Bitcoin is approaching a year-long downtrend on the weekly time frame
The cryptocurrency sector continues to struggle below its $1 trillion market cap, with its biggest digital asset – Bitcoin (BTC) – itself struggling to keep its head above the $20,000 price level, leaving traders and investors scrambling to see what’s next .
As it happens, Bitcoin is close to hitting a nearly year-long downtrend on the weekly time frame, according to a chart and analysis tweeted by pseudonymous crypto trading expert Direct Capital on 4 October.
Actual, Rect has noted in the technical analysis the bearish pattern of the flagship cryptocurrency that began around November 2021 and has continued since, with a couple of exceptions over time, the most noticeable being in April 2022.
In another chirpingthe analyst noted the recent compression of the price of Bitcoin, which he believes could lead to volatility due to historical behavior in such cases:
At the same time prominent crypto expert Michaël van de Poppe observed that Bitcoin “consolidated between levels”, predicting “resistance at $20.7k for scalp shorts, otherwise $22.4K looks next”.
According to Van de Poppe, “the area for longs is at $19.6,000”, which he considers interesting, although he expressed doubt that such a thing would happen.
Other indicators are positive
That said, Bitcoin has seen increases elsewhere, particularly in the number of holders, which has steadily increased, adding 4.5 million new holders in the year to September 27, as investors continued to turn to Bitcoin as a store of value.
On top of that, Finbold reported in September that 47% of Bitcoin holders were still in profit, despite the decentralized finance (DeFi) token’s 60% price drop in 2022, indicating that the current bear market hasn’t put them off.
Investor confidence is also illustrated in the greater amount of Bitcoin being removed from crypto exchanges, with less than 9% remaining there – another four-year low – indicating investors are entering ‘HODL’ mode.
Bitcoin price analysis
At press time, Bitcoin was trading at $20,149, up 0.99% on the day, in addition to a 7.59% gain over the past seven days. Over the year, the price of the flagship digital asset has fallen by 63.63%.
Meanwhile, the market capitalization of the first digital asset is currently $387.34 billion, according to CoinMarketCap data obtained by Finbold on October 5.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
