Bitcoin Weekly Forecast: We are still waiting for a breather on the upside

Avatar James Lochner 2 years ago

The bulls failed to show enough determination to push the BTC price higher, and now the support at $19,000 is being visited again. However, a respite is still needed, and in this weekly Bitcoin forecast, we see that it is likely to happen soon.

At the time of this writing, BTC is trading at $19,037, accumulating a slight loss of 1.46% in the last 24 hours, and 11.21% in the last 7 days.

Volatility decreased considerably during this week, but fear remains dominant, which continues to generate problems in the short term.

Despite this, in the weekly summary of metrics that performs CryptoQuant, we see that investors do not want to leave the market. It seems that they are waiting for prices to bottom out.

The first reason to think this is that, while Bitcoin has lost 70% of its market capitalization in recent months, stablecoins have only lost 11%. Stablecoins on exchanges are equal to half of BTC reserves. Rifles ready to fire?, is most likely. The question is when it will happen.

Bitcoin weekly forecast

In the BTC vs USDT monthly chart we see how the price remains parked at a support around $19,500.

The long-term trend is clearly bullish, and we are seeing a sharp pullback from this direction in the process. The price is close to the 78.60% of the Fibonacci retracement tool, where it is feasible that the fall will be stopped. However, we cannot confirm it yet.

If the support zone in which the price is located is lost, the ground could be cleared up to 88% of Fibonacci, which coincides with a support at $10,760.

At the moment, it does not seem too likely that we will fall towards $10,000 – $11,000. In any case, we should first see a significant upward respite. The short/medium-term trend is bearish, and the latest momentum of this direction is quite widespread.

Daily chart

From this time frame we see that the price remains locked in a descending wedge, which is a figure that, when formed on a relevant support, announces a possible reversal of the trend.

To confirm a trend change, the descending line delimiting the figure must be traversed. The most conservative would expect the resistance at $21,500 to be overcome.

As long as this does not happen, the price will remain at risk. If Bitcoin loses support at $19,000, then this weekly forecast would be invalidated, as it will be more likely that we will see strong sales over the next few days.

All our publications are of an informative nature, so in no case should they be regarded as investment advice.

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