A misleading green? the Bitcoin (BTC) price breaks through an important resistance zone in the very short term, but the cryptocurrency may find it difficult to continue this rise by the end of this month, which also corresponds to the quarterly close of this year.
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Bitcoin price heading towards $20,000?
Bitcoin price rises to $19,661 on Bitfinex today, September 28, 2022. Cryptocurrency is trading at $19,561 at the time of writing this article. Its price is currently registering a daily gain of 2.53%.
With Bitcoin hovering in the $19,500-$20,000 area, the founder of Eight, Michael van de Poppe pointed out that the cryptocurrency broke and flipped from $18,900. Bitcoin price would benefit from dollar weakness and a “fall in yields” due to a European Central Bank restarting quantitative easing.
Michaël van de Poppe believes that if Bitcoin manages to defend $19,300 as supporta test of $20,700 and $22,500 is then possible.
The resistance of whales below this symbolic level
The $19,300-$19,500 area has acted as a major resistance for Bitcoin price for several days. By recrossing it, the bulls therefore give hope to the markets as to a reconquest of $20,000.
However, the platform Material Indicators recalled the existence of a concentration of whales under $20,000, more precisely around $19,500. Whales can form an important resistance zone there.
Bitcoin price loses support and quarterly range
As we approach the monthly but also quarterly close, the price of Bitcoin needs to recover the $20,000 to avoid increasing the risk of seeing further larger declines below this level.
Trader Rekt Capital shared a chart that shows this month’s quarterly candlestick “finding resistance” at $20,000, a level that served as support last quarter.
At this point, Bitcoin has additionally lost a quarterly range, between $19,880 and $29,060. As the chart above shows, Bitcoin had closed the last quarter of 2020 in the green at $29,060.
It only subsequently ended a quarter below that level in the second quarter of this year, which brought its price down from $45,000 to below $20,000 over the period.
Bitcoin price remains on a knife edge unless it closes this month and quarter above $20,000. Otherwise, the scenario of a bottom for this cycle during this last quarter could indeed materialize.