Fragile feelings – The price of Bitcoin (BTC) shed $24,000, a drop that rekindled fears of a return to the price of the cryptocurrency, to levels of last June, at the height of the bear market. While other declines are still possible, their magnitude should not correspond to the forecasts of the most pessimistic.
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Fear After $25,000 Resistance – $25,500 Bitcoin Price
The price of bitcoin drops to $23,686 on Bitfinex today, August 16, 2022. The cryptocurrency is trading at $23,943 at the time of writing. The markets are currently entitled to a doji.
Bitcoin is back below $24,000, after a foray above $25,000, which was followed by a rejection yesterday. For the trader Rekt Capital, this fall is part “in the context of a new technical test potential of the previous resistance”.
This decline, however, reveals the bearish sentiment of the markets in general, despite the recent increases. The trader behind the ChrisBTCbull Twitter account has noted that it will have been enough that the Bitcoin does not manage to break the 25 000 $, for traders to start again evoke the $16,000 – $17,000.
Falls to be expected over a week, but nothing dramatic for the markets?
Can the price of Bitcoin really fall back to levels near $20,000, or even below? Or are these traders’ fears simply unfounded?
Analyst Matthew Hyland highlighted in a chart, the weakness of the “last closes of the daily Bitcoin candles”. He showed that this pattern bears similarities to two other relatively recent patterns, which preceded a succession of red candlesticks.
On the graph, however, these declines seem to have ended with the formation of new higher lows. Theoretically, a continuation of the current falls should therefore not bring the Bitcoin price below $22,600. By touching this level, if past scenarios are indeed repeated, the cryptocurrency should even be able to cross the major resistance zone of $25,000-$25,500.
The price of Bitcoin could therefore end the day once again in the red, but the bulls manage to defend the essential support at $23,400 for the moment. Further declines may occur in the coming days, but this does not mean that Bitcoin is on its way to $20,000.
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