Bitcoin continues to struggle around the $20,000 level despite volatility and market pressure being quite high. The squeezed trend of the asset could be due to several external factors, due to which the market is expected to remain volatile this September.
However, BTC price is expected to hit lower levels in October or November this year, with little chance of a strong rally.
BTC price was cut from a heavy falling wedge after the recent bounce and is preparing for a rally to reach levels above $21,000. However, fresh US employment rates were also considered to give a significant push to assets. Unfortunately, the price dropped midway and now shows a huge upside potential below $19,000 during the weekend.
Currently, BTC price is hovering within a convergence channel, which is somewhat similar to a symmetrical triangle. The asset is testing the lower support of the channel and is working hard to rally. Although the bulls are using every resource to break out of the bearish trend, they are lagging in volume and therefore provide a good opportunity for the bears.
There is no doubt that the asset could eventually rally microscopically, but in the larger time frame, there is little room for a bitcoin bull run in 2022.
No ‘V-Shaped’ Recovery for Bitcoin
Bitcoin is very bearish on the larger time frame, regardless of the fact that the asset is showing significant bullish momentum in the near term. The asset is expected to stabilize in a notable descending trend over the next 45 days and may even form new bottoms. While the chances of a strong rebound are extremely low.
Valerio, a well-known analyst, claims that the bottom of bitcoin will be reached in October or November, which is the first drop since the BTC price. According to the chart above, Bitcoin peaked within 2 years of the previous halving and further tough times. However, after reaching the bottom, the asset trades sideways until the next halving.
Considering the past trends, BTC bottoms are yet to be reached which may be completed in Q4 2022. Specifying the target, the analysts believe that the bottom is likely to slide below $17,500. However, he also highlighted a recovery that may not be ‘V-shaped’ as BTC price could trade around lower levels for a few weeks.
Therefore, bitcoin bulls are expected to be cautious as several bull traps could be laid as the trend could remain heavily bearish for an extended period.