cascading waterfall – The price of Bitcoin (BTC) is struggling to get back above $20,000, and is showing signs of weakness that could draw new lows for this year, if the bears manage to break the current support.
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Bitcoin Price: The $18,700 Battle
Bitcoin price drops as low as $18,562 on Bitfinex today, September 23, 2022. Cryptocurrency is trading at $18,758 at the time of writing this article. Its price is currently recording a daily loss of 2.94%.
Bitcoin is therefore retesting the support around $18,700. This zone had stopped the fall of Bitcoin on September 6, and the cryptocurrency subsequently began a bullish rebound that took its price above $22,000.
Bitcoin had lost this support two days ago, on September 21, when the FOMC announced an interest rate hike. The bulls however recovered it the next day, the day before today’s test.
The very short-term battle for the bulls therefore now seems be that of the $18,700a bulwark that must hold, to avoid a possible fall to the lows of June of this year.
The $14,000 scenario from the perspective of former resistances
The Material Indicators platform has shared a chart that shows that the price of Bitcoin is currently in an area that contains resistances that have proven key in the pastbetween $11,750 and $20,000.
$11,750 was a multi-year resistance, which was breached at the start of the previous bull run in late 2020. $20,000 was a resistance that coincided with the ATH of the 2017 bull run.
Between these two levels is the peak of the 2019 bull run, and the low of this year around $17,590, which was hit on June 18.
Material Indicators points out that “by switching to a line chart”, markets can observe a Bitcoin that is “trading and trending down”.
If this trajectory continues and this support at $18,700 breaks, the $18,000 would be in danger, and Material Indicators believes that If the $18,000 “does not hold”, then the $17,500 won’t hold either. So what would be the next stop for Bitcoin? The previous high of 2019 below $14,000 or a little higher?
The bullish bounce off of a recent pattern did not occur heading into the weekly close. Will this weekend finally see the start of this cycle’s long-awaited drop to the bottom or will the bulls once again attempt to reclaim $20,000?