Two-way breakout and flip – The price of Bitcoin (BTC) lost key support in the recent weekly close. Can the markets still hope for a rise above $20,000 in the very short term?
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The $19,500 cap for Bitcoin price
Bitcoin price rises to $19,326 on Bitfinex today, September 26, 2022. Cryptocurrency is trading at $19,257 at the time of writing this article. Its price is currently registering a daily gain of 1.76%.
Bitcoin starts the last week of September, still hitting the resistance zone around $19,300.
the trader Michael van de Poppe shared a chart, to highlight the fact that a “breakout” and “flip” of this level, “will probably already trigger a new trend”.
Michael van de Poppe considers just a flip of the $19,500 “preferred” would be a sign of strength towards $20,000, and even potentially towards $22,500.
On September 7, Bitcoin price broke $19,500 after falling below $19,000. It then started a bullish rebound that took it above $22,000.
Weekly closing of Bitcoin: towards black days?
Despite this bullish outlook should the $19,300-$19,500 zone break through, the recent weekly close does not argue in favor of the bulls.
In a series of tweets, the trader Rekt Capital shared his insights into Bitcoin price ending the week, below an essential level represented by the black line in the graph below.
On a weekly basis, this level has represented support for the price of Bitcoin since mid-June 2022. The cryptocurrency closed the week for the first time below this black line since Bitcoin rose above it in late 2020.
Given this last weekly close, which was therefore accompanied by a loss of essential support over the period, should the markets now expect further declineswith a Bitcoin that could hit its floor price for the cycle during this possible fall?
Are the bears hammering the final nail in the coffin to start the ultimate bear run? The most optimistic will exclaim “ah finally, the bottom! “.