Crypto
  • BTC
    21192.4 -1.07%
  • ETH
    1216.01 -1.51%
  • SOL
    39.98 -4.79%
  • ADA
    0.5 1.02%
  • AVAX
    20.21 -4.17%
  • DOT
    7.97 -1.39%
  • LTC
    57.78 -1.09%
  • BCH
    114.7 0.68%
  • DOGE
    0.07 7.28%
  • CRO
    0.13 -0.78%
  • MATIC
    0.58 -2.76%
  • LINK
    6.92 -3.98%
  • UNI
    5.63 0.86%
  • SHIB
    0 -1.78%

Do not expect a lot from Bitcoin

We will look at Bitcoin today, but mostly through the lens of other markets. Thus we will start by looking at the overall situation in the whole world and then dive more into the price movements of the biggest cryptocurrency.

USA is currently experiencing the biggest inflation in 40-years, which lead to unexpected FOMC meeting on Monday. This, in combination with the geopolitical tensions between Russia and Ukraine, will definitely have impact on Bitcoin. The uncertainty is rising, which can be seen by looking at the price of gold, which is breaking technical levels after more than a year of almost sideways movement.

Yes we can say that Bitcoin is Bitcoin and it is completely different asset class, but it is already a part of financial world, which means that all of these events will also affect the price of it. I have been stating for quite some time that I do not think that this year we will witness an extraordinary bull run and current situation only supports that.

Daily chart following through

The daily chart is not doing anything extraordinary. It is moving simply the way its supposed to. One of the biggest resistances that we have ahead is around the 46 – 47 000 dollars. We have touched this level few days back, which made a lot of people bullish. However, I would not be surprised, if we fall down to 30 000 dollars.

I am sure that this might be a bit surprising to some, because not many people are expecting this, especially from the retail side. However, unless we break the 46-47 000 level, the possibility of testing the current low of around 33 000 dollars is in play. Unlikely, but still in play.

4h chart pointing down? 

The situation at 4h chart does not seem any good for Bitcoin. I can see it falling a bit more down to the levels of around 38 000 dollars. There are many reasons for this, but the biggest is liquidity. This level has the biggest volumes and they act as a magnet. Another reason is a gap, which is close to this level. Since the current levels do not have strong volumes, the buy orders can start kicking in around 38 000 dollars.   

TradingView Chart

4h chart of Bitcoin, Source: Author´s analysis, tradingview.com

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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