Bitcoin (BTC) – Downside risks keep lingering in the background despite the latest stabilizationPosted on Sunday, October 23 2022 at 9:07 pm GMT+0000
Bitcoin (BTC) continues to drift sideways with weak momentum, painting a series of tiny neutral candlesticks just below the 20-day exponential moving average and the 20,000 barrier.
Glancing at the oscillators, they are indicating that the directional impetus vanished. The MACD is following a horizontal path beneath the zero mark. Moreover, the ROC and the momentum indicator are muted near their equilibrium levels.
Additionally, the market volatility dried, as revealed by the converging keltner channels. Those suggest that a strong directional move may soon unfold. Currently the crypto-king is still disregarding all the hustle in the global markets, and will eventually join the party.
However, the medium-term outlook is still looking gloomy as the price action is taking place near the bottom of the long-term downtrend, and a revisit of the 18,100 – 17,600 zone, encapsulating the keltner channels’ lower band, is the most likely scenario at the moment. A decisive close lower will further deteriorate the technical picture and shift the spotlight straight towards the 16,200 level, taken from the late November 2020 low. A steeper sell-off could last until the August 2020 peak at 12,500.
Alternatively, a jump above the 20-day exponential moving average followed by a fast rally beyond the 20,500 – 20,700 congested zone will motivate a more remarkable upside correction. Such a move will initially test the 22,800 high posted on September 13th, while even higher the mid-August peak at 25,200 will step under the radar.
In brief, Bitcoin is adopting a neutral status in the medium-term picture, while hovering quietly below the 20-day exponential moving average. However, downside risks keep lingering in the background despite the latest stabilization, and a price drop below 17,600 will unleash the next bearish wave.