Bitcoin - BTCUSD to mark new lows by the end of Q4 2022
Just hours after our last post, in which we warned about the unsustainability of the up move, Bitcoin erased all of its early gains and retraced below 19 000 USD. This development aligns with what we highlighted as a bear market behavior, characteristic of wild swings from one side to another and market participants trying to fish for a bottom.
That and a looming decrease in corporate earnings and a slowdown in the global economy will further reinforce our narrative about the progression into the second stage of the bear market. As a result, we think the risk aversion will rise, causing more weakness in the stock and cryptocurrency markets over time.
Indeed, we think what market participants have seen up until now, regarding erratic moves and elevated volatility, is just a pretext for what will unravel over the coming months. We believe we will see a dramatic increase in volatility, which will cause even more people to jump back and forth between bullish and bearish narratives.
However, as we did for the past year, we plan to stay unshaken by the high volatility and focus on the market's primary trend. Therefore, we remain bearish and committed to our price targets at 17 500 USD and 15 000 USD. Technical and fundamental factors support our view.
Illustration 1.01
Illustration 1.01 shows simple support and resistance levels. To confirm our bearish thesis, we want to see the price break below the Support 1.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 displays the weekly chart of BTCUSD and two SMAs in a bearish constellation.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
That and a looming decrease in corporate earnings and a slowdown in the global economy will further reinforce our narrative about the progression into the second stage of the bear market. As a result, we think the risk aversion will rise, causing more weakness in the stock and cryptocurrency markets over time.
Indeed, we think what market participants have seen up until now, regarding erratic moves and elevated volatility, is just a pretext for what will unravel over the coming months. We believe we will see a dramatic increase in volatility, which will cause even more people to jump back and forth between bullish and bearish narratives.
However, as we did for the past year, we plan to stay unshaken by the high volatility and focus on the market's primary trend. Therefore, we remain bearish and committed to our price targets at 17 500 USD and 15 000 USD. Technical and fundamental factors support our view.
Illustration 1.01
Illustration 1.01 shows simple support and resistance levels. To confirm our bearish thesis, we want to see the price break below the Support 1.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 displays the weekly chart of BTCUSD and two SMAs in a bearish constellation.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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