Another broken bracket! – Believed to be hedged against a new weekly fall, but the wind has fallen on Bitcoin (BTC) again. In fact, the Fed’s recent announcements of its monetary tightening have wreaked havoc on all risky asset classes. And given that the S&P 500 and Nasdaq closed at their lows for the week, this correlated against the attempted rebound from the king of cryptocurrencies that began on Monday.
With the movements on Thursday and Friday, the validation of the outbreak of a key support seems to take shape with the risk of seeing BTC prices approach the lowest level of the year. So much so that the trend since its last ATH in November 2021 would pass a milestone. And this in a way that is not reassuring to investors in cryptocurrency.
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Bitcoin – below Kumo’s lower limit in weekly units?
Zoé de la Roche’s latest BTC Bulletin mentioned a third genetic test of the Kumo (cloud) lower limit, Senkou Span B (SSB). However, by relying on a larger graphical support or threshold, the likelihood of breaking it increases over time, according to the theoretical and practical side of technical analysis.
It is clear that what was supposed to happen has happened, too a weekly light that is currently under SSB, and therefore under Kumo. Not to mention that other unfavorable technical signals have just been added: the formation of a doji, which testifies to investors’ nervousness, the eruption of prices below Tenkan, and especially the one under the $ 41,000 grant. And if we were to still drive the point home, Chikou Span, Ichimoku’s main key point, was stuck inside the cloud at the same time as it broke $ 41,000.
In the event that Bitcoin prices should confirm their movement under the cloud, sellers or bears would be fine to revive the ghost of shoulder-head-shoulder (ETE). In that case, we would approach the $ 37,000-38,000 support to begin with.
Bitcoin – Towards a slide towards $ 35,000?
If ETE were to rise from the ashes, Bitcoin prices would not only risk falling towards the $ 37,000-38,000 support, but the lows of the year would be in sight. So we’re talking about support of $ 35,000 (or $ 34,000-35,000 on the charts), which were successfully tested on January 24 and last February.
Unless the situation turns around this important weekend for France’s future, the breach of the $ 41,000 grant would mark a weakening of the various curves of Ichimoku in daily units. On the one hand, BTC prices are failing again under Tenkan and SSB. On the other hand, the Chikou Span is no longer very far from passing under the cloud, despite the proximity of the horizontal SSB, which can act as a support.
These unfavorable technical signals would revive fears of further consolidation, since the cryptocurrency last failed during the $ 46,000 resistance.
In summary, and despite the great uncertainties that hang over the financial markets, we must point out that Bitcoin manages to stabilize surprisingly effectively between the support of $ 35,000 and the resistance of $ 46,000. But after all, the trend since its last ATH in November 2021 is still unresolved. And that will be as long as there is no exit from this price zone regardless of the direction.
However, this can change against the bulls. For in fact, the last error in BTC prices during the resistance of $ 46,000 caused the drawing of a recently falling line (in red in daily units) that passed through its last ATH. In the event that the threat of $ 35,000 support becomes clearer in the near future, it will lead us in the direction of a downward trend, with the risk of a return to last year’s lowest level, around 30,000. $.
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