FED’s efforts to reduce inflation, cryptocurrency affected the capitalization in the market quite hard and resulted in the continued decline in market values. bitcoin on the other hand, it wants to determine the direction of the price movement by getting rid of the volatility that has arisen.
Bitcoin investors continue to expect a new catalyst as BTC has been trading within a range since last week. However, according to Bitcoin’s all-time price chart, Bitcoin could now drop to $11,000, a much scarier scenario as it formed a similar pattern before dropping to $3,200 in 2018.
If the 2018 Model Is Realized, Bitcoin Could Drop To $11,000
Looking closely at Bitcoin’s all-time price chart, BTC is forming a consolidation level at $19,500. This formation of BTC is similar to the price chart of 2018, as BTC had built a range-bound zone around $11,400 before dropping to $3,200 that year.
If this formation repeats, Bitcoin may decline to $ 11,000, expanding the collapse scenario. The chart also shows that Bitcoin could start its bullish phase after reaching the bottom line by the end of next month. It can be derived from technical interpretations that Bitcoin will reach $40,4000 by the end of the first half of 2023.
The crypto market cap also follows the bear market of 2015 as LMACD made the same breakouts in 2015 and 2019 before starting the bullish trend. If the same is true for the current crypto winter, investors could definitely face a bullish breakout in the crypto market in 2023.
CPI Data Brings Great Volatility
While the world remains turbulent due to an exponential rise in inflation, the cryptocurrency market is showing a similar trend. The latest US CPI data released has had a hard impact on cryptocurrency prices as inflation data has reached the highest levels in the last four decades. In order to dominate the inflation rate, the FED continues to apply additional interest rates.
As Koinfinans.com previously reported, BTC is currently trading at $19,700 with an uptrend of about 4%. Investors’ data on CPI as Bitcoin dropped to $18,190 yesterday bitcoin priceIt is possible to say that they use it to manipulate. Bitcoin gained around $2000 in just one day, which indicates deep price manipulation.
However, Bitcoin price is now heading towards the $20,000 primary resistance level again and if it stays above this level, there is a possibility of an upward move to the next immediate resistance level of $22,000, where the EMA-100 is currently trading. The EMA-20 and EMA-50 are currently trending upwards and the EMA-50 is trading near the $20,000 level, indicating a short-term recovery.
On the other hand, the lower limit of the Bollinger band is still at $18,000, below which Bitcoin price could drop to the critical support level of $17,500. The RSI-14 is trading below the 50 level, suggesting that Bitcoin’s current positive momentum is short-term as BTC price may soon follow its previous trends and end this year with bearish woes.
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.