Analyst: Bitcoin Approaches “Critical Intersection Of Macro Support”
Bitcoin fast approaching towards a critical intersection of macro support, according to a crypto analyst.
Critical Intersection Of Macro Support
As pointed out by a Bitcoin analyst on Twitter, the cryptocurrency is coming closer to an intersection with a macro support curve.
BTC macro support curve | Source: TheCryptoCactus
The above chart showcases how Bitcoin has been moving relative to the macro support curve.
Now, there is another chart below that highlights the two important ranges of the BTC price.
Bitcoin's two price ranges of interest | Source: TheCryptoCactus
One notable feature in the graph is the wicks that BTC has been making into the lower band of Range 1.
Range 2 is the the previous all time high (ATH) price of Bitcoin. Currently, its value is around $19,000. It may be the most important macro support line.
If the price drops below the last ATH range, it could be a signal that the market has taken a bearish turn, and price will continue to go down.
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However, as the wicks show, buyers are still trying to accumulate and maintain the range. As long as investors keep absorbing the pressure, the range will not be lost.
There are two scenarios that can happen with Bitcoin right now. The next chart will help showcase them.
Where can the BTC market possibly head to next? | Source: TheCryptoCactus
The first scenario is that amidst all the FUD and crackdowns (like the Binance one), buyers keep at absorbing the pressure and maintaining this range. During which, the price gradually goes up to the next range.
The other way out of this range is if Bitcoin drops below the $30k mark, and this price-point becomes a resistance line.
The latter scenario will mean the price goes down a lot, and coming back from it will be tough. And as mentioned before, if BTC crosses the $19k last ATH support line, a bear market can possibly take hold.
At the time of publishing, BTC is down almost 6% in the past 24 hours with its price floating just below $33k. Over the last week, its value is down around 2%.
Here is a chart noting the trend over the last 6 months:
BTC gains slight downwards momentum | Source: BTCUSD on TradingView
Bitcoin’s price seems to be going down once again as the cryptocurrency touched the $32k mark Thursday.
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The market price will need to be maintained above $30k for a bullish trend. If the price drops further, and the $19k support is lost, the market could very well turn into a bearish one.
Featured image from Unsplash.com, charts from TheCryptoCactus, TradingView.com