Bitcoin October 7, 2022 – Twenty Thousand Leagues Under Resistance

Momentum or fall – The price of Bitcoin (BTC) could close again this week below $20,000, if the bulls do not quickly raise the bar.

This Bitcoin price analysis is brought to you in collaboration with CryptoTrader™ and its algorithmic trading solution finally accessible to individuals.

Bitcoin price and resistance zone: flip or flop?

The price of Bitcoin is expected to record its third consecutive bearish candlestick today, October 7, 2022, since recovering above $20,000 on October 4, 2022.

The cryptocurrency closed yesterday below this level. The fall continues despite a slight foray above $20,000. Bitcoin is trading at $19,474 at the time of writing this article. Its price is currently recording a daily loss of 2.75%.

The cryptocurrency is thus returning to around an old resistance zone, which had complicated its return above $20,000. The $19,400 area – $19,500 indeed acted as a major hurdle for the price of Bitcoin, from September 19 to October 3, the day before it regained $20,000.

Historical data shows that during this period, the initial drop below this zone or a release at its level, was followed by a drop below $19,000 in the days that followed.

Will this scenario repeat itself or will the bulls be able to defend and turn the $19,400-$19,500 into support, after what would be like a test of this area today?

Will the USD Coin be the end of the crypto winter?

Eventual hopes of a strong bullish rebound after the recapture of $20,000 are therefore running out of steam. The CEO of CryptoQuant, Ki Young Jushared a chart today, to illustrate his explanation of an indicator that would announce “ the next parabolic rise “.

The graph shows the percentage ofUSD coin (USDC) that crypto exchanges hold, or that is stored outside of these platforms.

Posted by Ki Young Ju – Source: Twitter

According to Ki Young Ju, the next big surge in the price of Bitcoin is likely to occur when cryptocurrency exchanges see “massive flows” of USDC inflows. Gold 94% USDC would currently be kept outside of crypto platforms.

Based on these assumptions and on these data, the markets should therefore wait a while longer before seeing a really strong bullish recovery.

Are the old demons indeed back for Bitcoin price, with $18,000 in sight? Or can markets hope for momentum for a stronger rebound above $20,000?

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John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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