- Bitcoin price shows a bearish outlook on the 3-day chart with targets ranging from $13,575 to $11,898.
- Analysis at a lower time frame shows that BTC is poised to initiate a recovery rally attempt to retest $17,251.
- A reversal of the $17,593 barrier to support would challenge bearish authority and could trigger a bullish move.
The price of bitcoin has broken through a stable support level that has prevented a fall over the past four months. This event forced BTC to recheck some not-so-good positions, which could trigger another collapse in market value for large cryptocurrency holders.
Bitcoin Price Remains Unknown
The price of bitcoin fell below the support level on June 18 to $17,593 on November 8. This collapse was the result of the dilemma of the FTX exchange, which eventually led to bankruptcy. Although the Bahamas-based platform’s problems began on November 2, the situation worsened in the following days.
This caused the cryptocurrency market to plummet and the price of bitcoin turned the $17,593 support into a resistance level. While BTC is being auctioned for $16,000, investors should keep an eye out for $15,551 which is a decent support zone and was formed about two years ago.
Failure to hold above this level will push the price of Bitcoin to the next foot at $13,575, which is also relatively low, especially compared to $11,898.
So from a macroeconomic perspective, a bear market bottom could occur anywhere between $11,898 and $13,575. As such, investors should be wary of and not succumb to short-term price spikes in bitcoin.
3-day BTCUSDT chart
Although the Asian session did not start higher, a London or New York session could lead to a spike in buying pressure. Therefore, investors should be wary of intraday Bitcoin price movements for scalping.
On the hourly chart, investors can see that the price of bitcoin is hovering above the 30-minute demand zone extending from $15,550 to $15,924. A bounce off that level could be the key to an 8% gain that will retest the inefficiency known as the fair value gap (FVG) at $17,251.
Only a reversal from the $17,593 barrier would cancel the bearish bias and extend the target of this up move from $17,251 to $19,500.
BTCUSD hourly chart
While things look bearish in the long term, the reversal from the $17,593 level will be the start of a recovery rally. This development would also negate the bullish thesis and potentially trigger a rise to the $25,000 psychological level.