Multiple red lights – The price of Bitcoin (BTC) returns to the closing level of August 26, about ten days before its fall below $19,000.
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Back to $20,000 for Bitcoin price
Bitcoin price falls as low as $20,075 on Bitfinex today, September 13, 2022. Cryptocurrency trades at $20,347 at the time of writing this article. Its price is currently registering a significant daily loss of 9.18%.
The markets are bathed in a blood red color, following the publication of the inflation report in the United States, which shows an increase of 0.1% from one month to another on headline inflation, against 0.6% for core inflation. Annual inflation is 8.3%.
In reality, the US Federal Reserve is therefore struggling to control this inflation, despite the measures that have been taken. Interest rate hikes should therefore continue in the short term.
In view of these figures, are the markets anticipating an extension of these increases, which will well beyond initial forecasts in terms of rate and duration?
A confluent resistance zone, and a logical rejection?
To these macro explanations of today’s fall in the price of Bitcoin, is added the technical analysis of the trader Rekt Capital. On a weekly basis, Bitcoin is facing around $23,400, a zone of confluent resistance with the 200-week moving average.
After this rejection at levels near this moving average, the price of Bitcoin “could form a Lower High”, according to Rekt Capital – see graph below.
In the absence of a significant move during the week, Rekt Capital predicts that this “steeply sloping Lower High will compress the price”, with high volatility “ which should happen by the end of September “.
Whale side: spike in on-chain losses and big red candlestick for Bitcoin price
Whalemap analysts have identified a variable that could have predicted today’s sharp drop. They indicated that a large movement of on-chain losses “may trigger a significant drop in the price” of Bitcoin.
Whalemap has also determined that “the first spike in onchain losses occurred before today’s drop”.
Data from Whalemap had shown the existence of a major resistance zone at $22,780-$23,400. The bulls failed to clear this hurdle. After the rejection, they finally found support in the $20,200-$20,400 area.
This was therefore too much resistance for the price of Bitcoin. The beautiful bull run is stopped dead by whales, which prevent the cryptocurrency from regaining the major bullish support at the level of the 200-week moving average.
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