several red lights – The price of Bitcoin (BTC) exploded to the high of the close on December 26, a day before it hit the $19,000 mark.
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Return of $20,000 for Bitcoin price
Bitcoin price falls as low as $20,075 on Bitfinex today, September 13, 2022. Cryptocurrency traded at $20,347 at the time of writing this article. They are of course currently registering a significant percentage of 9.18%.
The markets are bathed in a blood red color, following the publication of the inflation report in the United States, which reveals an increase of 0.1% over one month for the rest of global inflation, against 0.6% for core inflation. The annual inflation rate is 8.3%.
In reality, the US Federal Reserve is therefore struggling to control this inflation, despite the measures that have been taken. Interest rate hikes should also continue in the short term.
In view of these figures, are the markets anticipating an extension of these increases, which will well beyond initial forecasts in terms of rate and duration?
A confluent resistance zone, and a logical rejection?
To these macro explanations of today’s fall in the price of Bitcoin, is added the technical analysis of the trader Rekt Capital. On a weekly basis, Bitcoin is facing environments of $23,400, at a zone of confluent resistance with the 200-week moving average.
After this rejection at levels near this moving average, the price of Bitcoin “could form a Lower High”, according to Rekt Capital – see graph below.
With no significant moves this week, Rekt Capital predicted that the Lower High was “heavyly leaning towards price, due to high volatility” what should happen at the end of september “.
Whale side: spike in on-chain losses and big red candlestick for Bitcoin price
Whalemap analysts have identified a variable that could have prevented today’s sharp drop. They indicated that a significant movement of people on the chain “may justify a significant drop in the price” of Bitcoin.
Whalemap has also determined that “the first photo of onchain losses occurred before today’s drop”.
Data from Whalemap had shown the existence of a major resistance zone at $22,780-$23,400. The bulls failed to clear this hurdle. After the rejection, they finally found support in the $20,200 – $20,400 area.
This was therefore too much resistance for the price of Bitcoin. The beautiful bull run is stopped dead by whales, which prevents the cryptocurrency from regaining the major bullish support at the level of the 200-week moving average.
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