• Bitcoin price shows clear signs of bearish continuation.
  • Another 40% to 50% drop is increasingly probable.
  • Upside potential is limited in size and scope.

Bitcoin price continues to display substantial weakness, with further threats to the downside now in site.

Bitcoin price approaches new 17-month lows

Bitcoin price barely holds on to the $29,000 value area as support. $29,000 is where the 2021 lows, 61.8% Fibonacci retracement, and the bottom of the final high volume node in the 2022 Volume Profile currently exist.

BTC previously dropped below this zone during the flash crash on May 12, 2022. While there was some hope and evidence that a broader bullish reversal could occur, buyers were unable or unwilling to support Bitcoin price any higher.

Below $29,000 is a wide-open range that Bitcoin price could fall into. The primary support levels are as follows:

$23,000 – contains the 78.6% Fibonacci retracement at $23,300, the 100% Fibonacci expansion at $23,000, and a high volume node in the 2020 Volume Profile.

$15,000 – contains a high volume node in the 2020 Volume Profile at $15,300 and the 161.8% Fibonacci expansion at $14,500.

$9,000 to $11,000 – contains the 2020 Volume Point of Control at $9,300, 200% Fibonacci expansion at $11,000, and the top of the monthly Ichimoku Cloud at $10,300.

BTC/USD Daily Ichimoku Kinko Hyo Chart

For bulls, there are two reasons why an upswing should be expected. First, Bitcoin price is within the 180-day Gann Cycle of the Inner Year, which indicates a bullish bounce is highly probable. Second, measuring from the previous all-time high peak in April 2021 shows more than 400 days have passed. This is important because Bitcoin’s corrective moves often culminate within the 400 to 450-day range.

Any upside potential is likely to be limited to the 50% Fibonacci retracement and Kijun-Sen in the $34,000 value area.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP