After registering the second largest selling candle of 2022, the Bitcoin price is presently recovering since the early trading hours. A notable buying volume has been accumulated and hence the price is expected to maintain a significant upswing ahead. While the bears are expected to jump at any time but a major hindrance could be around $22,500 or above but below $23,000.
Will Bitcoin drop after reaching these levels or withstand the acute bearish pressure and rebound finely?
While the markets have slightly turned bullish, most of the crypto assets other than Bitcoin have also picked up notably. However, the markets may not remain elevated for a longer time as a drastic drop may be fast approaching. Let’s Check it out
- The BTC price is currently trading above the major daily support region between $18,500 to $19,000. This was where the precious bear market began that also indicates the zone is a strong demand area. Therefore, if the price bounces from here to the supply zone between ($22,500 to $23,000), then it would accomplish a perfect ‘H&S’ pattern.
- The volume and the momentum are slowly collapsing and hence every leg down is getting weaker & weaker. Therefore, there may be not enough strength to break the support zone.
- With the recent leg down, the Wave 1 that began around August 20 lows is achieved with the formation of Wave 5, which marks the recent lows at $18,789. Moreover, wave 1 to 5 has also accomplished within the triangle formed between the highs of 25 August & the recent lows which was extended one, breaking the support at $19,700
- Whenever the BTC prices slash hard, the shorts are getting trapped very often. Therefore, it appears that there is a lot of scope for a short squeeze ahead.
Therefore, the very first confirmation for the upcoming short-term bullish scenario would be a clean breakout of the $19,200 and the second confirmation may be testing & clearing $19,600. Further, a short squeeze may be likely that may uplift the price to $22,500 to $23,000.
However, in case, the Bitcoin(BTC) price drops below $18,500, the entire short-term bullish scenario may be invalidated for a while until the price regains the confirmation levels.