E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

SpiceJet launches taxi service with zero cancellation fee and zero wait time in THESE cities – All details here

August 12, 2022

What to Expect from the Major Upgrade?

August 12, 2022

TS EAMCET Result 2022 declared: Telangana EAMCET scorecard download at eamcet.tsche.ac.in

August 12, 2022
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
Facebook Twitter Instagram
E Amazings
You are at:Home»Crypto»Bitcoin Corrects Towards $22K But How Low Can it Go? (Bitcoin Price Analysis)
Crypto

Bitcoin Corrects Towards $22K But How Low Can it Go? (Bitcoin Price Analysis)

Paul EasterBy Paul EasterJuly 23, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email


The $19K demand zone has served as a significant support level for Bitcoin’s price over the past few weeks resulting in a short-term rally towards the 50-day moving average at around $22K.

Technical Analysis

By Shayan

The Daily Chart

During the recent rally, the price failed to break out of the 50-day moving average, which is the most critical resistance level in Bitcoin’s path toward the $30K price channel.

On the other hand, as the following chart shows, the price broke the long-term descending channel’s middle boundary, successfully formed a pullback to the broken trendline, and initiated a rally. If Bitcoin breaks above its 50-day moving average(approximately $22.5K), a  surge toward the 100-day moving average(currently at $28K) and the channel’s upper boundary will be possible. Furthermore, the RSI indicator roughly hints at the relative equilibrium between the bulls and bears as it’s around 50.

1
Source: TradingView

The 4-Hour Chart

After experiencing a prolonged bearish trend, the price has entered a mid-term consolidation stage forming a well-known continuation pattern called a ‘wedge.’ However, the lower trendline and the $19K major support level have recently supported the price, resulting in a surge towards the upper boundary.

That said, the market failed to continue higher as the price was rejected from the wedge’s upper trendline and is plummeting in a correction. If Bitcoin successfully breaks the wedge to the upside, its next destination will be the $30K significant resistance level. In contrast, If the trendline rejects the price, a new short-term shakeout to the $18K mark would be possible.

Given the lack of demand and the current bearish sentiment in the crypto market, a new bearish cascade seems like a probable scenario for cryptocurrency.

2
Source: TradingView

On-chain Analysis

By Shayan

As stated in our previous analysis, miners have recently joined the capitulation phase and have been slightly distributing their assets. On the other hand, mining Bitcoin isn’t as profitable because the price has plummeted by roughly 74% from its all-time high.

Bitcoin’s difficulty follows miners’ behavior and the hash rate’s latest movements and readjusts based on how many miners currently have their machines plugged in. Generally, when they’re more active miners, the difficulty adjustment makes it harder for them to mine a block and ensure that the block production remains relatively constant. Relying on CryptoQuant data, the most recent adjustment has reduced the difficulty by 5.01 percent. Since July 3rd, 2021, this is the most significant single negative decrease in Bitcoin’s difficulty. Additionally, it is the third consecutive negative one, making it the longest such streak in a little more than a year.

3
Source: TradingView

Bottom line: Historically, the miners’ capitulation has led to the end of the bear market. Therefore, Bitcoin may soon reach its long-term bottom and begin a new uptrend toward higher price levels.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.





Source link

Paul Easter

Related Posts

What to Expect from the Major Upgrade?

By Paul EasterAugust 12, 2022

India Investigates Ten Crypto Exchanges For Laundering Over $125 Million

By Paul EasterAugust 12, 2022

MakerDAO Co-Founder Proposes Dumping $3.5 Billion USDC Reserves for ETH

By Paul EasterAugust 11, 2022

Ankr Receives a Strategic Investment from Binance Labs

By Paul EasterAugust 11, 2022
Add A Comment

Comments are closed.

Our Picks

SpiceJet launches taxi service with zero cancellation fee and zero wait time in THESE cities – All details here

By Paul EasterAugust 12, 2022

What to Expect from the Major Upgrade?

By Paul EasterAugust 12, 2022

TS EAMCET Result 2022 declared: Telangana EAMCET scorecard download at eamcet.tsche.ac.in

By Paul EasterAugust 12, 2022
Recent Posts
  • SpiceJet launches taxi service with zero cancellation fee and zero wait time in THESE cities – All details here August 12, 2022
  • What to Expect from the Major Upgrade? August 12, 2022
  • TS EAMCET Result 2022 declared: Telangana EAMCET scorecard download at eamcet.tsche.ac.in August 12, 2022
  • Will government impose blanket 28% GST on casinos, online gaming and horse racing? August 12, 2022
  • Apollo Hospitals share price falls 3% after poor Q1 results – what should investors know? August 12, 2022
  • A Portable Computer Living In 1988 But Also In The Future August 12, 2022
  • Syrma SGS Technology IPO subscription opens today: Check price band, allotment and listing date August 12, 2022
Archives
  • August 2022
  • July 2022
  • June 2022
Facebook Twitter Instagram Pinterest TikTok
  • Home
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.