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.
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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.
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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