bitcoin As we move towards the $23,000 level, many people are eagerly waiting for this level to be successfully surpassed. If this level is exceeded, the signs of a long-awaited reversal may become stronger and a “rally of hope” may be seen. On the other hand, the low purchasing power and therefore low transaction volume in Bitcoin cannot bring the business to the desired level.
Bitcoin Price May Drop
Bitcoin was moving in a bearish flag pattern last month, pushing at least three local tops from $22,000 to $23,000. Unfortunately, a reversal to local lows of around $19,200, none of the spikes resulted in a full reversal rally.
Although this level has not been exceeded, we have not seen a movement towards the frightening levels of $ 17,000 since June 20. Of course, although the lack of this decline has somehow preserved the hope, the low entry to the market makes the probability of a recovery rally very low from time to time.
Historically; While Bitcoin hopes to push it below the aforementioned pattern with additional selling, it tends to move down and reach the lower boundary of the formation before attempting another breakout.
The “bear flag” is one of the most common patterns seen in assets moving in sharp downtrends. They usually occur during periods when the market needs to “cool down” before another rise or fall.
Shining Star: Ethereum
With the date of the long-awaited “The Merge” update in Ethereum, the price rallied by 30% and benefited other altcoin projects by showing a domino effect.
At the time of writing, Ethereum has led the market with a 25% rally in the last seven days, while Bitcoin has fallen to $21,000 and still hasn’t recovered.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.