Bitcoin price rally this week is just a mere drop on a hotplate

Bitcoin price ekes out gains for the week after a two-week negative print.
BTC price, however, is nowhere near any signs of recovery and could be set for another leg lower next week.
Expect price action to be pushed against $19,036 and could drop in the coming weeks towards $16,020.

Bitcoin (BTC) price rewards brave bulls with gains for the week after price action finally pushed back against the bear trend where Bitcoin is in. Unfortunately, a weekly price chart does not show a nice picture with no signs of a turnaround. Instead, a squeeze to the downside continues with lower highs, set to see BTC price say goodbye to $20,000 for the last quarter of 2022.

BTC price is getting chopped by the bond market

Bitcoin price is undergoing a harsh law in economics, finance and investing as the cash drain out of cryptocurrencies continues. Investors are switching their attention towards US treasury notes that are currently paying out roughly 3% or more on yield as the US Fed keeps hiking, making bonds more and more attractive as a product of investment. Why would one still pour its money into cryptocurrencies that are having their worst performing year in their existence while safe government bonds return you over 3% coupons?

BTC price thus is not in a sweet spot against the current macro dynamics that are seeing investors flee into safe havens. Expect price action to decrease at the high while the low end gets further pushed against $19,036 until it breaks. To the downside, BTC could go as far as $16,020, where the new monthly S2 support for September falls perfectly in line with that level.

BTC/USD Weekly chart

Markets and Bitcoin believers require a bullish signal from their favorite cryptocurrency. The green weekly close would already be a good sign, and should BTC price break above $22,000 and close above the 55-day Simple Moving Average (SMA), something significant would have changed in the price dynamic in cryptocurrencies. Not that $28,695 or $30,000 would be back in the picture, but at least $26,000 would come back to play in the medium-term.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram