Crypto Comeback Pro is a crypto trading tool for investing in the crypto market with an %88 average win rate on trades and is the #1 trading software for crypto traders from all around the globe in 2022. Try it For FREE Today. (Ad)
Briefly-
- BTC’s downside journey has its approaching 200-week MA.
- Bitcoin has formed a near-term double bottom formation.
- The nearest resistance stands at $22.8K.
Bitcoin has declined since hitting the $69K all-time high in November 2021. Meanwhile, the southbound movements have seen the bellwether crypto hitting the $20,715 lows on 15 June. The intriguing thing is that the bellwether crypto reached the 200-day MA. That marks the 5th time BTC has made such a move in its history.
Surprisingly, the crypto has never seen a weekly close beneath this mark. Though Bitcoin plummeted beneath its during March 2020 sessions, it rebounded and formed a long bottom wick, regaining it shortly after.
Near-Term Double Bottom
The 24-hours chart doesn’t highlight any reversal signals as the price has plunged without bottoming signals. Nevertheless, the daily Relative Strength Index explores its lowest level since January. Meanwhile, an upside 46% move followed at the time. The 30-minute timeframe indicates Bitcoin formed a double bottom near $21K relative to the 14 June price levels.
Moreover, the crypto has rebounded at the descending parallel channel’s support level. These channels comprise corrective actions, meaning a potential breakout on the cards. Such a move would hit the nearest resistance at $22.8K.
Wave Count Analysis
The near-term wave count indicated Bitcoin could have concluded a 5-wave downside action. The prevailing low stays at the confluence of Fibonacci levels from $21,850 to $22,650. These come from the 161 external Fibonacci retracements of wave four and wave one’s length. So BTC might have made a bottom.
Moreover, if the overall downtrend from the ATH is an ABC corrective structure, waves A: C has boasted a 1:2 ratio as far as the FIB chart is concerned. That backs conclusions from near-term counts and weekly charts that confirm a bottom for BTC.
The reasons behind the current crash remain the same: recession fears and escalated inflation. Tech and cryptos fall in the risk asset categories, and investors remain skeptical about the asset classes as they wait for stiffer monetary policy from the Fed, citing inflation. Bears still control the market and could drag crypto prices lower.
You can share your opinions in the comment section below.
Crypto Comeback Pro is a crypto trading tool for investing in the crypto market with an %88 average win rate on trades and is the #1 trading software for crypto traders from all around the globe in 2022. Try it For FREE Today. (Ad)
