- Bitcoin price is showing clear signs of a bearish continuation.
- Another drop of 40% to 50% is becoming more and more likely.
- The potential for growth is limited in size and reach.
The price of bitcoin continues to show significant weakness and new downside threats are now appearing on the site.
Bitcoin price nears new 17-month lows
The price of bitcoin is barely holding the $29,000 value zone as support. $29,000 is where the 2021 lows, the 61.8% Fibonacci retracement, and the low of the last high volume node on the 2022 volume profile currently exist.
BTC previously fell below this zone during the flash crash on May 12, 2022. While there was some hope and evidence that a larger bullish reversal could occur, the buyers were unable or unwilling to support the price of Bitcoin higher.
Below $29,000 is a very open range that the price of Bitcoin could fall into. Main support levels:
$23,000 – contains a 78.6% Fibonacci retracement at $23,300, a 100% Fibonacci extension at $23,000, and a high volume node in the 2020 volume profile.
$15,000 – Contains a high volume node in the 2020 volume profile at $15,300 and a 161.8% Fibonacci extension at $14,500.
$9,000 to $11,000 – Contains a 2020 volume breakpoint at $9,300, a 200% Fibonacci extension at $11,000, and a monthly Ichimoku cloud top at $10,300.
Ichimoku Kinko Hyo Daily Chart BTC/USD
There are two reasons for traders to expect a rally. First, the price of bitcoin is within the 180-day Gann cycle of the internal year, which indicates a high probability of a bullish rebound. Secondly, the measurement of the previous all-time high in April 2021 shows that more than 400 days have passed. This is important because Bitcoin corrective moves often peak in the 400-450 day range.
Any upside potential is likely to be capped by a 50% Fibonacci and Kijun Sen retracement around the $34,000 value area.