Along with traditional financial markets like equities and bonds, cryptocurrencies are having a terrible time due to high inflation and rising interest rates. The market capitalization of all cryptocurrencies has remained below $1 trillion since May, as Bitcoin’s value has fallen by 64% this year. BTC bulls are taking a breather under the moving average 50 on its daily chart since Friday, October 7th, after its recent rally faced headwinds on its approach to the $22,500 barrier. Bitcoin price around the $20,000 region is a significant technical level linked to historical upward pressure as traders continue to anticipate large rebounds. BTC/USD is currently trading at $19,400, expressing an extended short-term outlook. IntoTheBlock’s data shows that Bitcoin needs to hold $19k support to prevent a steep fall, where 1.3 million addresses bought over 680,000 BTC. According to the most recent Cryptocompare report, despite losing 3.11% of its value in September, Bitcoin still outperformed the S&P 500 and Nasdaq. This could imply that market players are dumping into BTC following recent volatility in fiat currencies, including the British pound and Japanese yen.
Key Levels
Resistance Levels: $25,000, $22,000, $20,000
Support Levels: $19,000, $17,000, $15,000
BTC/USD Daily ChartBTC dropped further, from $20,455 to $19,250 over the weekend. Despite the decline, the price is still moving in the direction of the bulls, as seen on the daily relative strength index (RSI), although the bears have gained a near-term advantage by driving the price below the crucial $20,000 level. Strong floor support is provided for the price activity by the support level, which is currently at $19,000.
Many traders remain under pressure or have been reawakened to new concerns about a slowing bull trend after an unimpressive break to a transient $25,214 two-month high. The $25,000 zone is a point of resistance based on regional retracement volume profiles; bulls should anticipate a challenging journey to break above this confluence zone.
BTC/USD 4-Hour ChartAs seen on the 4-hour chart, at the short-term high of $22,800, BTC/USD recovery eased. If the decline keeps going, it might eventually reach the low point of $17,567 in June 2022. Emerging support can be seen on the 4-hour chart close to the $19,000 region. The combined resistance of the $20,000 level and the short-term moving averages (MA 50 & 200) at $19,500 would have to be overcome for another recovery, though.
Currently, the short-term oscillators are sending conflicting signals regarding momentum, and the overall trend is not in line with the price direction. The bulls could then aim for the short-term moving average (MA 200) at $19,800 and the $21,000 zone, slightly higher if buyers can break through the $20,000 barricade.
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