Bitcoin Analysis – Buyers Can’t Get Ahead!

While we thought Bitcoin would finally top out after the recent US inflation numbers came in lower than expected, yesterday’s bounce unfortunately didn’t allow buyers to pressure investors. As the latest technical analysis proves the power of a bear market Since the last ATH in November 2021.

The Fed and the ECB are still there confirmed their determination to continue their respective monetary strengthening despite the prospect of recession. This sent all risky asset classes into the red in a short period of time. Another important point to remember is that the European Central Bank will soon start its asset reduction program (QT: Quantitative Tightening) from next March.

Fearing that 2022 will end as it began, are we not necessarily setting the stage for a new wave of corrections? Which may or may not confirm that the buyers are unable to move forward in the sense that they are close to a psychological breakdown.

Bitcoin in Weekly Units – Ongoing Tombstone Doji

The week started well for bitcoin, then things went downhill. In fact, it currently is prevailing doubt in the existence of tombstone doji, that is, a candle without a tall wick body. And the longer the latter remains, the stronger the bearish movement will be. It doesn’t look like that when you look closely. But even so, the volatility of the last few days would prompt us to be cautious.

Failure of BTC prices to break the weekly high would indicate a lack of appetite among buyers. Especially since the technical hurdles for a long-term rebound are many. First of all, $20,000 resistance (or 2017 ATH) becomes It is a difficult psychological barrier to overcome thus, a pullback could lower prices where FTX is at best bankrupt.

Second, the downward movement of the 30-week moving average (weekly 30-ma) is not weakening. What unites Weinstein’s Phase 4 for the thirtieth and eighth week in a row. And as of late, Bitcoin prices are still hovering around the $16,000 support for last year’s lows.

If tombstone doji lives up to its unfortunate reputation, we’ll move toward it $16,000 breakeven. key, The third wave of BTC bear market correction It may move towards the $12,000 support since the last ATH in November 2021.

Bitcoin in daily units – Technical indicators are about to go down

The bearish rally that had sent Bitcoin soaring above $18,000 was winding down. First of all, Wednesday’s tombstone doji sent prices back to square one from earlier this week. This coincides with FTX falling below pre-bankruptcy levels.

On the other hand, technical indicators are gradually turning downwards in daily units. with MACD close to the bearish crossover relative to the signal. At the same time without forgetting that The RSI is already below the neutral zone at 50. And as the bad news keeps coming, The 200-day moving average (MM200 daily) is floating on a downward slope. In this sense, BTC prices are moving away from it and towards the happiness of sellers.

Due to buyer frustrations, we would refer to the scenario quoted in weekly units. And therefore, BTC’s fall since the last ATH in November 2021 will exceed 80%. But when the financial markets are stressed, there will be serious questions about whether the $12,000 will be kept.

BTC – Rebounds still on sale in 2022!

We have proof of this when Bitcoin lost all its gains from the beginning of the week All rebounds through 2022, regardless of their respective magnitudes, have so far been sold. And for some, the results have been fatal to investor confidence in cryptocurrencies. One way or another, this asset class’s return to favor may not happen anytime soon.

not only major central banks will not be affected by their monetary tightening as the financial markets want. But to think otherwise would be to jeopardize their credibility in the fight against inflationary pressures. With this risk we would enter a period of stagflationthat is, a period when economic growth is weak or negative relative to inflation.

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Consequently, as long as the cost of capital remains high relative to the rate cycle, A Bitcoin bear market should not be expected to decline. Moreover, due to the inter-market relationship between asset classes, equity indices will not surrender despite their declines. Hence, investors should further minimize their exposure to cryptocurrencies for now.

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