Bitcoin (BTC) rose above the psychological $20,000 zone on Tuesday, trading at these levels for the first time since Oct. 4 in the extension of a bounce from the $19,000 level. BTC might end the week/month with strong gains after reaching a daily high of $21,080, despite increasing signs of falling Bitcoin mining revenue. Plagued by a stronger USD, supported by US Treasury yields cutting their losses, might also weigh on the no. 1 crypto prices. While Bitcoin’s weakness against the USD will not be a long-term scenario, the BTC/USD remains under pressure after the recent rate hike. The crypto market is increasingly nervous that mining profits will stay low in 2023, despite strong BTC adoption. Signs of a slowdown may have led to the heavy selling. However, despite staying bearish in the last two months, Bitcoin (BTC) is headed for the seventh week of gains for the first time since August. The largest Bitcoin mining operation in the world, Core Scientific, shocked the market earlier this week when it announced that it was considering filing for bankruptcy due to its precarious financial situation. Public Bitcoin miners were compelled to liquidate their holdings to fund their operations
Key Levels
Resistance Levels: $28,000, $25,000, $22,000
Support Levels: $20,000, $18,000, $15,000
BTC/USD Daily ChartBTC rallied to a high of $21,080 as it get closer to closing above $20,500 this week. The price has since confronted a minor rejection to break higher to a region of $22,000; regrettably, buyers may now find it difficult to break above this area as the price retraced to $20,560.
BTC’s price is aiming for a rally to the $22,000 region, which could play a crucial role in its price rally towards $25,000, and has maintained its rebound structure above the $19,000 region. BTC’s price may fall to support levels as low as $19,000 if it is unable to maintain its break of $21,000.
BTC/USD 4-Hour ChartOn the 4-hour chart, the moving average (MA) 50 for the short-term frame already crossed above the MA 200, which now results in a strong one-way directional bullish continuation pattern reinforcing the current bullish bias. The next barrier for the BTC/USD pair, which is around $22,000, is more likely to be the target for bulls now that the price is above the $20,000 mark. Alternately, the BTC/USD pair may revert to the MAs under the $20,000 mark.
Last week, neither the bulls nor the bears were able to muster enough momentum to successfully break through either of the range’s boundaries between $20,000 and $25,000. The high for the current week is hovering just above the $21,000 level, and a new test ahead is the most likely outcome. A break higher would support the positive predictions made here.
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