Bitcoin Breaches Critical Level: Where Do We Stand?
Looking at the current state of being on Bitcoin in Week 33 of 2023
Price progression reveals Bitcoins cards
As we approach Week 33 of 2023, the current state of Bitcoin paints an interesting picture. The cryptocurrency's price movement over the past week has revealed some telling trends.
Despite struggling to avoid further losses amidst a prolonged sideways consolidation period marked by reduced volatility, Bitcoin has witnessed rapid progression. Bears take control over this week's price action, followed by over 60 million long liquidations at the time of writing across the board on the derivatives exchanges, as it is searching for its next support level.
Throughout July and August 2023, Bitcoin experienced one of its lowest liquidity periods ever, trading within a narrow range between $US30,000 and $US28,800. The cryptocurrency market remained uncertain, with no clear indication of whether this consolidation period served as an accumulation or a distribution zone.
However, with its recent drop, it has now become clear that this range served as a distribution range, and now will stand for a strong resistance region, before any upwards price movement can once again be classed as a sign of strength.
Currently, Bitcoin is testing a crucial support level in the US$28,000 range. As illustrated in the chart below, this level has seen the most volume transacted since mid-March of this year.
This level is important to hold if Bitcoin is to see a quick rebound in the short term. If it does, then a quick rebound back towards the $US29,000 region would establish $US28,000 as new support.
However, if this support level is breached, US$28,000 would become an increasingly vital resistance level in the near future. In such a scenario, we might see a further decline in price towards the US$27,000 region, which would be the next support level, or even lower towards the US$24,000 pivot point.
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