Bitcoin is hanging by a thread as increasing selling pressure sends the major cryptocurrency back to key support levels. If the bulls are unable to step in and bounce back from this new bearish attack, the number one crypto could slide back below its current range.
At the time of writing, the price of Bitcoin (BTC) is trading at $21,400 with a loss of 9% and 11%, respectively, over the past 24 hours and 7 days. Ethereum continues to outperform BTC price as it has been able to maintain part of the gains from last week, but the bulls should draw a line at the support that turned resistance at $1,700.
According to Caleb Franzen, Senior Market Analyst at Cubic Analytics, the bearish momentum of Bitcoin is about to increase. According to the 4-week Williams %R Oscillator, the cryptocurrency is flashing a potential sell signal, an indicator used to gauge the asset’s momentum.
According to Franzen, Williams %R indicates that Bitcoin is oversold from the overbought level. As seen in the chart below, the price of bitcoin has turned downward whenever this indicator signals an oversold.
This indicator successfully predicted the major crypto crash of June 2021 when the price of bitcoin fell north from an annual high north of $64,000, and the most recent downside trend when BTC finally lost $40,000 and hit its highest in two years at $17,600. Arrived at a low price. analyst Told,
When the 1-month W%R drops from “overbought” to “oversold”, it has been a harbinger of a major decline and capitulation. Could this time be different? Absolutely. But the momentum of the bear market will be hard to beat.
Franzen believes that $21,500 will act as an important level for a potential support retest. If BTC price fails to maintain these levels, the cryptocurrency could drop to $20,500 and $19,000 before seeing a rally.
What is affecting the price of bitcoin?
The crypto market is experiencing continued selling pressure due to macro-economic factors: interest rates hiked by the US Federal Reserve (Fed), and high inflation that has stoked the risk appetite in global markets. These factors were mitigated by recent events.
Economist Alex Kruger, however, believes that attention has shifted from the US to Europe. The old continent is facing an energy crisis, a war between Russia and Ukraine and potential threats to economic growth in its major economies.
Under the current macro conditions, Kruger believes that only Ethereum may have a chance to continue to outperform due to the upcoming “merge” on the mainnet, transitioning from proof-of-work to proof-of-stake. kruger Told,
Two things happened overnight: Equity risk, driven by poor German data, hit the air pocket after crypto consolidated at lower levels. It looks like markets are moving from focusing on the Fed to focusing on Europe. ETH is the best performing crypto asset in this dump, not the position