The Bitcoin price is down by a percentage point in today’s trading session, continuing a bullish trend which started last week after sliding below the $20,000 price level. The bitcoin price drop comes amidst the dollar pressure, rising fed rates and concern over inflation and a looming recession, which have become a worry for most investors, impacting the whole cryptocurrency industry.
However, despite these factors, Bitcoin has received mixed signals in the markets following the Ethereum merge that saw the Ethereum platform migrate from proof-of-work to proof-of-stake. To many Bitcoin enthusiasts and investors, the move has been seen as positive for Bitcoin.
They argue that the merge made Bitcoin account for 95 per cent of the overall market value of tokens using proof-of-work, and hence investors should expect to see Bitcoin starting to recover, terming POW as the only acceptable, proven method of creating digital commodity.
The Bitcoin technical analysis indicates a high likelihood that we may continue to see prices falling in the next few trading sessions. For starters, throughout the past few months, the $20,000 price level has been the psychological zone where most buyers and sellers have become concentrated.
The result has been the seesawing of the Bitcoin price around this zone for the past few months. Even in trading sessions that have looked like a new trend may be starting, they have been followed by either buyers or sellers, bringing the prices back to the $20,000 price level.
Therefore, my Bitcoin analysis expects the prices to fall and possibly hit the recent price lows of $17,7715. However, Just as it has been the case for the past few months, my analysis takes into account the possibility that the current bearish trend will not be a trend reversal. In fact, I expect after the current drop, the prices to likely retreat and move towards the $20,000 price level. My analysis will only be invalidated if prices continue dropping after hitting the $17715 price level.
This post was last modified on Sep 20, 2022, 12:12 BST 12:12