Bearish breakout or saving retreat? The price of Bitcoin (BTC) has plunged below $19,000. Is this another sign of weakness, or is a local low needed to give the bulls the momentum they need to get back $20,000?
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Bitcoin Price Below $19,000: North or South?
Today, September 19, 2022, the price of bitcoin on Bitfinex has dropped to $18,318. However, the cryptocurrency manages to bounce back to $19,000 and is trading at $19,575 at the time of writing. Its price is currently registering a daily gain of 0.77%.
Does this drop below $19,000 mean an impending return to $20,000, like when Bitcoin revisited the $18,000-$19,000 area on September 6 before starting a strong bullish bounce? Or is it necessary to close below $19,000 to repeat this pattern?
In terms of scale, the drop was larger this time than last time from levels below $19,000, with a drop to around $18,300 today vs. a return to the low $18,500. $- $18,700, 6 and 7 September last year.
Bitcoin starts the week at this all-time low as it still has a US Fed meeting in two days. Trader Mikael van de Poppe reminds that the “general consensus” is for a 100 basis point uptrend with further gains in the coming months.
Breaking Necessary Bitcoin Price Support
As such, the price of Bitcoin starts the week dropping below $19,000, which could herald an upcoming bullish rebound or other larger declines with a rather favorable macro event for the bears.
This technical analysis will not reassure traders and analysts who would rather see greens in the coming days. Trader Rekt Capital has shared a weekly bitcoin price chart that shows the cryptocurrency closed last week below the multi-month high-low shown in black on the chart.
As such, Bitcoin could be poised to “potentially breakout”, a bearish pattern that could materialize, especially if this level turns into new resistance “to confirm a bearish breakout.”
Is the king of cryptocurrencies close to being knocked out or can markets hope for a bounce that will ease traders’ wallets in the very short term? The factors seem to be working in the bears’ favor, with the bulls having little hope for the recent Bitcoin price fluctuations.
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