December 5, 2022

BTC Charted a Bearish Double-Top, Now Facing Critical Support (Bitcoin Price Analysis)

3 min read

Following green days, Bitcoin came across resistance at $45K. Together with the negative momentum of the worldwide markets, Bitcoin got heavily rejected and retraced listed below $42K.

Looking at the Stablecoin Supply Ratio, there is a considerable amount of ‘‘ dry powder’ sitting aside, indicating the possible buying power. Meanwhile, the rate action sees a pullback stage back to the most recent crossed dynamic resistance level. All in all, this short-term correction is a healthy action for a reputable cost healing.

Technical Analysis

By: Shayan

Long-Term: The Daily Chart

Bitcoin has actually begun a mini-rally starting at $37.2 K, with a series of strong daily green candles.

However, the bullish momentum has actually deteriorated. On Thursday, the price was declined by the descending purple trendline together with the $45K resistance zone.

Presently, BTC is seeing a correction phase and is checking the crossed 50-day MA (~$42.2 K), looking like a pullback pattern. In spite of the most recent correction, on the bigger image and following a long-lasting bearish pattern, BTC has actually lastly made a higher high, increasing the opportunities of a pattern reversal occasion.

Regardless, Bitcoin should establish a higher low during the ongoing restorative stage to complete the healthy reversal structure.

Technical Analysis; D-TF

Short-Term: The 4-Hour Chart The cost charted a double-top pattern, which is a regular bearish

  • sign, after reaching its prior key pivot at the $45K resistance location. Two possible scenarios from now on: As mentioned before, the price will get declined at resistance, deepen the correction, and drop to lower cost levels to form a greater low
  • . The price will get supported and break above the descending trendline, spike to higher levels and target the next essential resistance around the $52K area.

Provided the bearish double top pattern and reducing bullish momentum, the very first scenario seems more likely now.

Technical Analysis;4H-TF

Onchain Analysis By: Edris The following chart includes bitcoin rate(white), 7-day MA (yellow), and 28-day MA(blue) of Stablecoin Supply Ratio(SSR ). The SSR metric is calculated by dividing BTC’s market cap by the aggregated market cap of all stablecoins. SSR suggests when there suffices liquidity offered to buy into the market or, on the other hand, when the buying power is not enough to move up the price, relative to BTC’s market cap.

Utilizing the MA Cross indicator, possible bullish and bearish waves have actually been indicated with decent precision over the last year. Now, following a couple of months of correction (considering that November’s ATH), SSR MA Cross has lastly painted a bullish signal, perhaps suggesting an end to this bearish leg.

Of course, this indicator ought to not be entirely thought about for decision-making, however it has actually been accurate over the previous few months.


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