red clouds – The price of Bitcoin (BTC) starts the week with a green candlestick, which however should not give the illusion of a certain resumption of control of the markets by the bulls, on a longer time frame.
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Bitcoin price below $20,000: red on red
The price of Bitcoin briefly regains $20,000 today, July 4, 2022. It rises to around $20,110 on Bitfinex, before falling to its current level to $19,787. The cryptocurrency price is currently recording a daily gain of 2.48%.
The price of Bitcoin still fails to regain essential levels to give a sufficiently strong bullish recovery signal to the markets. The cryptocurrency made a weekly close below the 200-week moving average for the third consecutive timeunderlines the trader Rekt Capital.
And after the significant losses of the second quarter of this year, the markets cannot be reassured by letting go of a “it can’t be worse” imbued with optimism.
Bulls strongly solicited for a bottom
Rekt Capital recalls that Bitcoin price has drawn at least three consecutive monthly bearish candlesticks in the past, at the time of bottoms bear markets of 2015 and 2018.
However, this configuration also preceded by a decline, then increases punctuated by declines, before a recovery over several months, “after the June 2019 summit”.
Markets were also treated to three consecutive monthly candlesticks “at the end of 2021 corrections that preceded further declines.”
The month of July 2022 could therefore close just as well with:
- a new drop followed by other drops;
- a timid recovery followed by further declines;
- a timid recovery followed by other declines before a real bullish recovery;
- a green candlestick marking the start of a multi-month bullish rally.
In other words, all scenarios are plausible at the moment, even if the continuation of the downtrend, with a timid green candlestick or not for this month, remains more likely than a sustainable recovery for Bitcoin.
To illustrate the balance of power between the bears and the bulls, Rekt Capital compared the level of Bitcoin price reaction, compared to the cryptocurrency’s buying volume from two weeks ago, and compared to the volume of sale last week.
This purchase volume produced a weaker reaction compared to the influence of sales volume on the price of cryptocurrency. Rekt Capital deduces that:
“Buyers need to try harder to push the price up a small amount.”
The forecasts are for the moment in favor of a continuity of the bear run, even if the long-awaited life-saving rebound can also occur at the most unexpected moment.
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