Is BTC Poised to Return Above $20,000?

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The Bit­coin price is down by a per­cent­age point in today’s trad­ing ses­sion, con­tin­u­ing a bull­ish trend which start­ed last week after slid­ing below the $20,000 price lev­el. The bit­coin price drop comes amidst the dol­lar pres­sure, ris­ing fed rates and con­cern over infla­tion and a loom­ing reces­sion, which have become a wor­ry for most investors, impact­ing the whole cryp­tocur­ren­cy industry.

How­ev­er, despite these fac­tors, Bit­coin has received mixed sig­nals in the mar­kets fol­low­ing the Ethereum merge that saw the Ethereum plat­form migrate from proof-of-work to proof-of-stake. To many Bit­coin enthu­si­asts and investors, the move has been seen as pos­i­tive for Bitcoin.

They argue that the merge made Bit­coin account for 95 per cent of the over­all mar­ket val­ue of tokens using proof-of-work, and hence investors should expect to see Bit­coin start­ing to recov­er, terming POW as the only accept­able, proven method of cre­at­ing dig­i­tal commodity.

Bitcoin Price Prediction

The Bit­coin tech­ni­cal analy­sis indi­cates a high like­li­hood that we may con­tin­ue to see prices falling in the next few trad­ing ses­sions. For starters, through­out the past few months, the $20,000 price lev­el has been the psy­cho­log­i­cal zone where most buy­ers and sell­ers have become concentrated.

The result has been the see­saw­ing of the Bit­coin price around this zone for the past few months. Even in trad­ing ses­sions that have looked like a new trend may be start­ing, they have been fol­lowed by either buy­ers or sell­ers, bring­ing the prices back to the $20,000 price level.

There­fore, my Bit­coin analy­sis expects the prices to fall and pos­si­bly hit the recent price lows of $17,7715. How­ev­er, Just as it has been the case for the past few months, my analy­sis takes into account the pos­si­bil­i­ty that the cur­rent bear­ish trend will not be a trend rever­sal. In fact, I expect after the cur­rent drop, the prices to like­ly retreat and move towards the $20,000 price lev­el. My analy­sis will only be inval­i­dat­ed if prices con­tin­ue drop­ping after hit­ting the $17715 price level.

BTC Daily Chart



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