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- BTC formed a bearish hammer candle rejecting the $18,000 mark
- Higher-highs candle formation on weekly basis
- Supertrend generated a buy signal in a 4 hour time frame.
Bitcoin had been dominated by the bears in previous months but in the current month, BTC gained some buyer confidence and was able to trade above $17,500 which is either a dead can bounce or short term trend reversal. As of now, the strongest hurdle for the bulls will be the $18,000 mark. In the last 24 hours, BTC was mildly negative by 0.62% and the 24h volume to market cap ratio stood at 0.0759.
Will the bulls break out the $18,000 mark?
On a weekly time frame, BTC had been consolidating for the past 6 months within the $18,000 to $25,167 range. Recently, due to the FTX collapse, BTC broke its lower range with a big bearish candle and slipped below a key support price level of $18,000 and hit a 2-year low at $15,460. In the past few weeks, bulls were forming relatively small bullish candles and recovered almost 13% from the recent lows.
Daily time frame narrative
On a daily time frame, BTC had been slowly and steadily on the rise approaching $18,000. In the previous session, bulls attempted to trade above $18,000 but got rejected from higher levels by forming a bearish hammer candle indicating bears are active on higher levels. As of now, BTC are expected to trade in the range between $17,000 to $18,000 for the coming few sessions. If bulls succeed in trading above $18,000, we may see a massive upside movement towards $20,000 in just a short span of time.
4- hour time frame
In a 4 hour time frame, BTC has been in a tight consolidation range but in the previous session, it had attempted to sustain above $18,000 but unfortunately the Fed rate hike may have negatively impacted the BTC/USD price. The supertrend indicator had generated a bullish signal in the past few hours and prices are still trading above the green line which indicates that prices may remain bullish in the short term.
Summary
After analyzing BTC in multiple time frames, prices look mildly bullish but the overall positional trend is still bearish, so aggressive traders may take risks and look for buying opportunities only above $18,000 for the target of $20,000. Till price level stays below $18,000, it is expected to trade in the range between $16,500 to $18,000.
If prices slips below $16,000 we may see further downside towards $14,000 and below in a short span of time.
Technical levels
Resistance levels : $18,500 and $20,000
Support levels : $17,000 and $16,500
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
