After yesterday’s recovery attempt, Bitcoin remained mildly negative at the end of the week as risk-off sentiment returned to the markets. Concerns about inflation and the global economy overshadowed BTC’s bullish market-calming measures. That leaves little room for a sentiment to deteriorate further, implying that much of the pessimism has already been priced in. The counter-movement in BTC, on the other hand, was rather disappointing, as the market may expect further losses and the continuation of the crypto winter in the short term. BTC/USD rose higher on Friday but ran into resistance near the daily moving average (MA 50) at $20,182. At the time of writing, the price of BTC/USD is $19,298 and has remained positive over the last seven days. Given the recent corrections in Bitcoin (BTC) in 2022, the asset is seeing increased investor activity. Bitcoin’s trading volume has steadily increased as it appears to be living up to its expectations of being a haven asset in an inflationary environment. According to on-chain data from Santiment, as of September 29, Bitcoin’s trading volume had reached its highest level since mid-June, standing at $42.68 billion.
Key Levels
Resistance Levels: $25,000, $22,000, $20,000
Support Levels: $18,000, $15,000, $13,000
BTC/USD Daily ChartBTC/USD rose on Friday but met resistance at $20,182, remaining below the daily moving average (MA 50) as well as the longer-term downside horizontal line drawn from the September 13 high. This maintains the current downtrend but has given the pair a chance to form higher lows on its daily chart this week.
A break below $18,000 may be required to signal that the bears have regained complete control. The relative strength index (RSI) is near its 50 line, but it has recently shifted down, while the price struggles above $19,000 and might point up. The oscillators’ mixed signals reinforce the view that traders may need to wait for clearer signals before trading.
BTC/USD 4-Hour ChartOn the lower time frame, a break below the moving average (MA 50) might accelerate the break below the horizontal line connecting the higher lows formed this week, encouraging bears to head for the September low of $18,153. If bears don’t exit the market from there, a break lower could extend the losses to a yearly low of $17,567.
A break above $19,500 could accelerate the break above the moving average (MA 200) as well as the breach of the uptrend line drawn from September 13. However, if this occurs, it could only indicate a larger upside correction, possibly towards the high at $22,800 or the longer-term upside at $30,000.
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