Bitcoin moves, altcoins follow! Is this the last dip before a bull run or there are more to come?
Bitcoin was created with the idea of an electronic peer-to-peer cash system. It is unlike any government-issued fiat currencies, such as the US Dollar or the Euro. The decentralization allows users to send funds to each other without going through any intermediaries.
In this article, we will analyze Bitcoin’s price using multiple time frames.
Bitcoin gives users control over financial stability instead of financial institutions. It is an asset that inspired thousands of new cryptocurrencies. Due to it outperforming other asset classes during the previous decade, it has become one of the most preferred investment options
What does BTC have for us in 2022? Let's take a deeper look!
BTC/USDT on a Monthly Chart
Using the logarithmic chart, we get a better long-term picture.
According to the monthly time frame, the trend is in favor of the bulls. BTC is now testing a major support level.
The structures on the left leave clues. You can see that this is a major support level for BTC. Last time, BTC spent roughly three months sitting on the level.
$35,000 is a key psychological level, a close below it may cause the price to continue making lower lows. The bulls need to turn it up a level if they want to keep the bullish channel structure. There is no confirmation of direction yet.
A similar structure could be observed back in 2020 when BTC formed a bullish channel. Fast forward to today's price action, we are looking to confirm the support. Roughly 7 days are left in the month. Are there are signs of bulls on the lower time frames?
Let's take a closer look!
BTC/USDT on a Weekly Chart
Sticking with our logarithmic chart, we are now finding a pattern in the weekly time frame. You can see that the price is establishing short-term support.
Let’s observe the first black circle and compare it with today's price action!
The last time price was sitting at this level, it pierced the support zone multiple times before making a new move. This time, we are floating slightly above the support zone. Although there is no confirmation of the next direction, we do see some early signs of bull regaining control. The bulls need to take action or lose this critical level.
A confirmation of support at this level will enable BTC to retest the range’s resistance. However, if the level is lost, the price will continue to make lower lows.
BTC/USDT on a Daily Chart
Again, let’s use the logarithmic chart and shift it down to the daily time frame! This time frame gives us a better look at when to pull the trigger.
Here, we get a better picture of the channel that is being respected. The price action recently fell as low as $32,900. In the short term, the bears will remain in control until we see a confirmation of support.
If BTC closes above the area of interest, expect the price to continue towards the midline. However, if there is a rejection at this level, expect the price to revisit support.
Any confirmation of direction, like taking out the midline, will be a sign of bulls coming back with strength. For bears, a rejection from $42,000 will push the price to revisit support. For now, the bulls have found minor support.
BTC Dominance on a Weekly Chart
In times of uncertainty, investors fled to what is more stable. In the cryptocurrency world, that rock is BTC. As it continues to gain exposure, stability will likely follow. Institutions will continue to slowly accept BTC and adopt it as a payment method.
For now, BTC dominance is at a major support level.
Summarizing the Above
- BTC on the monthly time frame shows that the trend is in favor of the bulls.
- BTC on the weekly time frame shows that there is no confirmation of the next direction.
- BTC on the daily time frame shows that the bulls have found a short-term support level.
- BTC dominance is at major support.
Remember that this is all based on the subjective views of the writer. As always do your own research.