• Bitcoin is currently experiencing extreme instability as it has remained below $22,000 due to bearish pressure.
• The upcoming weekend could prove to be a decisive factor as the ‘Weekly-Death Cross’ is in progress and a bearish weekly close may cause major price drops.
• Market sentiments are slowly turning bearish and traders are expecting a retracement, which could potentially be towards $20,000.
Bitcoin Price Analysis
The crypto markets have been trying to recover offering a tough fight to the bears. The bulls, however, are unable to restrain the descending trend as the bears are extracting profits after petty jumps. The buying volume is largely dominated by the bulls, but the levels have dropped since the early trading hours, by more than 16%. This indicates that the buying pressure is fading away which may be outpowered by the bears at any moment.
Bitcoin Weekly Death Cross
Moving ahead, the upcoming weekend is expected to be extremely important as the much-awaited ‚Weekly-Death Cross‘ is in progress. The token has been closing past couple of weeks on a bearish note and an additional bearish weekly close may pave way for the bears to slash prices very hard. Will hopes about bull market get crushed or will bulls regain strength?
Bitcoin price has been following a similar pattern that assisted it to rise during first fortnight of 2023. After struggling hard to sustain crucial support between $22,267 and $22,382, price broke down below these levels and consolidated within descending parallel channel. If price repeats this pattern then it may continue consolidating within narrow braces and quickly drop hard below $20k in coming days. A ray of hope maybe when volume spikes notably triggering rebound but market sentiments have started turning bearish now so chances of rebound seem bleak at current level of trading volume.
Fear & Greed Index
The Bitcoin Fear & Greed index that smashed highs at 65 recently has dropped below 50 at 48 indicating that bullish sentiment has ceased and traders are expecting retracement which could potentially be towards $20k if market participants start selling off their holdings due to fear caused by death cross formation this weekend then we can expect price action similar to what happened in Dec 2021 when BTC dropped from around 30k all way down till mid teens mark before starting uptrend again so its important for traders not take too much risk even though bullish case still remains valid in long term due to increasing institutional interest in crypto markets overall .
To conclude ,the upcoming weekend could prove pivotal for bitcoin’s short term price movement as death cross formation will act as catalyst for new downtrend so traders should keep eye out for any signs of weakness like decreasing buying volumes etc . However in long term bullish case still stands strong with institutional investors showing active interest in cryptocurrencies so even if BTC drops next week its highly likely it will recover back soon after some consolidation period .