The BTC/USDT pair’s 5.08% slump on Tuesday came after the completion of the Ethereum Merge upgrade and has triggered another round of pessimistic Bitcoin price predictions. This has also put the pair on the back foot in Wednesday’s trading, with the pair down 0.25% as of writing.
Recently, several analysts have begun to make bearish Bitcoin price predictions, with some calling for a drop to 15K and even 10K. This has spurred an increase in capital flow into Short Bitcoin funds.
Coinshares reports that the Short Bitcoin fund inflows are now happening at a record rate, with $18m coming in last week to mark the highest weekly inflow into Short BTC funds in history. Conversely, inflows into Long BTC funds are seeing significant outflows, with $11m of funds shown to have left such funds in the same week under review. This is the 4th straight week that such outflows from Long BTC funds are being seen.
The latest move to the south follows the breakdown of the small symmetrical triangle, which fulfilled technical expectations as the preceding move was a downtrend push from the 21631 price resistance. I called this move on a social media group last week. There are three pathways to 14K, 12.5K and eventually 10K. These are highlighted in the Bitcoin price prediction below.
The rising wedge is a bearish pennant if the selloff that started in June 2022 is considered. This picture confers on the breakdown move, the ability to drop to test the 17970 support (18 June low). This is the completion point of the measured move from the pennant’s breakdown but is only approachable if the bears take out the intraday support at 18782.
A further breakdown of the 18 June low clears the pathway for the bears to target 16406 initially. Unopposed action of the bears at this pivot will degrade that support and make 15415 available as a new downside target. 13912 and 12527 will serve as the barriers preventing a collapse to the 10,000 psychological price mark.
On the other hand, the bulls need to force a bounce to protect the integrity of 18782. If this is successful, the 20691 resistance comes into the picture as the immediate upside target (26 July low). A further advance brings 21631 into the mix (17 July and 21 August highs) before 22680 becomes available as another target to the north. A further advance challenges the 20 July high at 24229, leaving the 15 August high just above 25k as the next upside target.
This post was last modified on Sep 07, 2022, 14:39 BST 14:39