After several days falling with very little volume, Bitcoin seems to want to resume the short-term uptrend, creating a hopeful weekly forecast.
At the time of this writing, BTC is trading at $23,120. Accumulates a slight loss of 0.35% in the last 24 hours, and 2.95% in the last 7 days.
Volatility declines as whales hold still
After it was expected that the Fed’s decision and Powell’s comments will cause volatility and problems for Bitcoin, the price ended up responding to the rise, because nothing unexpected happened, and the market was already discounting a possible rate hike.
Now, BTC has decisively recovered the realized price, a metric that every time it is crossed announces the possible bottom of the bear market.
However, the MVRV ratio indicator (which had moved away from the deep value territory recently) still indicates that there is room to fall further, if we compare the current drop with previous bearish cycles.
Meanwhile, the whales, which usually have their sights set on the long term, remained quiet during the week, and we can verify this by the low volume of entries on the exchanges.
It is possible that they are waiting for a catalyst, which will finish defining the course in the short term. For now, the outlook is bullish.
Bitcoin weekly forecast
On the weekly Bitcoin chart, what we can observe is a corrective process in progress, which, for now, continues to generate a bullish weekly forecast.
After a sharp drop towards $17,622, and a strong buying volume announcing a possible bottom, the price has been making a healthy and necessary pullback, after several months in continuous decline.
A healthy pullback would lead the price towards the demand zone around $30,000. A rebound from the current point to that price will yield gains of about 27% in the short term.
Right now we are seeing little determination on the part of buyers, so a broader rally is at risk. Perhaps it will take a new fall towards $19,000 to collect demand and go towards $30,000. However, this vision could change in the coming hours/days, if what we analyze in the following paragraphs happens.
Bitcoin is locked in an upward wedge
Bitcoin’s recent low volatility ended up forming an ascending wedge figure, which heralds a possible trend reversal.
By forming on such an important support as $19,000, it is possible that it is announcing a rest range, causing the accumulation of large clusters of orders that could quickly make the price jump once the resistance line is crossed.
However, there is also the weekly bearish forecast on the table, where we understand that the little buying determination, could leave the free space for the Bitcoin bears to take control momentarily, and lead the price towards $19,000, once the ascending line that encloses the wedge is crossed with force ($23,800).
If we correlate factors such as how deep the price has fallen, the need for a broader respite after months of decline, metrics announcing a possible bottom, the bullish scenario seems to be more likely.
But for now, it’s a matter of keeping an eye on where the price will end up breaking in the short term.
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