- Bitcoin price remains underpinned just above $20,000.
- BTC price could be seeing bulls making a colossal mistake and burning through cash reserves for something that will inevitably happen.
- Expect a better and healthier rally when BTC price hits $19,036 or $16,020 for a turnaround.
Bitcoin (BTC) price is set to close out the week with another loss in the books as bulls are grasping and struggling to balance price action above $20,000. But bulls could be in for a disappointing treat as bears will sit on their hands refraining from buying BTC to close out their short positions. With that imbalance, bulls could quickly stop and see their cash being burned by losses as BTC prices will inevitably move below $20,000 in these current headwinds.
BTC price is looking for a junction to turn
Bitcoin price is set to go out the week with another double-digit loss as bulls have been at it all week to maintain support above $20,000. Those efforts must have cost loads of cash, where traders and investors thought that BTC price could not get any lower, and with equities rallying towards the end of the week, cryptocurrency traders must have thought that a turnaround was due but did not come. Risk is now that early-bird buyers are stuck in losing trades and might start to cut those losses, triggering the inevitable: a drop below $20,000.
BTC price will then hit $19,036 quite quickly and print new lows for 2021 and 2022. That pivotal technical level, with $16,020 as a fail-safe system, could be where Bitcoin finally hits its turning point. Do not expect a V-shaped recovery but rather an L-shape or W-shape once that lower-level around $16,000 is reached, mainly because the catalyst that currently is suppressing cryptocurrencies is not a theme that will change overnight but needs a gradual change backed by data and signs of a turning before dreaming back of $30,000.
BTC/USD weekly chart
Headline risk could rather be, this time, a headline surprise. ALready a few headlines came out this week saying that Russia is ready for peace talks now that aggression in Ukraine has died a bit to the background, and it almost looks like Russia has secured the provinces it wanted to add for annexation. A breakthrough headline would quickly see investors forget about the headwinds from inflation and purely focus on the rallies in cryptocurrencies and equities as algorithms will have triggered already a massive amount of buy-orders purely on the analysis of the headline. BTC price would not look for ground but would see a break above $26,868 and would be inches away from $30,000 in just a matter of one or two trading days.
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