Bitcoin (BTC) Price Analysis: Bears Advantageous as Critical Support Deteriorates
Bitcoin, the world’s largest cryptocurrency, has been hovering above the $24,000 level for several weeks, with some analysts and investors hoping it would break out of its current price range.
However, recent developments have left the market uncertain, as Bitcoin has lost critical support, keeping the price above this level. The implications of this could be significant, as experts warn that bears may find an opportunity to delay the end of the bear cycle and the fall of 2022’s crypto winter.
Bitcoin’s January momentum had propelled its price to its peak since the end of the crypto winter, with prices above $40,000. However, this momentum has slowed, and the digital currency has lost critical support, keeping its price above $24,000.
As a result, experts warn that the bears may find an opportunity to delay the end of the bear cycle, prolonging the fall of 2022’s crypto winter. As a result, buyers will have to step in to stop the current price action and avoid a continuation of the downward trend, which could lead to the crypto collapsing to even deeper levels.
The decrease in value can be attributed to various factors, including regulatory concerns, increasing scrutiny from governments and financial institutions, and a general downturn in the global economy due to the Russia-Ukraine conflict. All of these factors have contributed to increased uncertainty in the market, making it difficult for investors to make informed decisions.
Do Bears Have an Advantage
The question on everyone’s mind is whether the bears have the upper hand in the current state of the Bitcoin market. With the loss of critical support at $24,000, bears may be able to delay the end of the bear cycle and prolong the fall of 2022’s crypto winter.
Bitcoin holds a new support level of $23,400, with a new resistance wall in the BTC range at $24,000. Recent weeks have seen Bitcoin whales aggressively buying positions ranging from $1,000 to $10,000 while retail investors have been selling continuously, establishing a new lower support level.
According to Bitfinex Alpha, the Bitcoin range caught investors by surprise, resulting in short liquidation worth $155 million, causing the price to increase. As of Wednesday, Bitcoin is trading at $23,600, which represents a 3% decrease in price.
Despite this recent dip, the asset has gained over 6.4% in the last week and 4% in the last month. However, if Bitcoin fails to hold its next support level, experts predict that the price could plummet to $20,000, indicating a victory for the bears.
Additionally, as the Federal Reserve signals that rate hikes are on the horizon, the bears have the upper hand, as this could negatively impact the US dollar.