The potential investors stay cautious and probably await lower levels to enter the game
The bitcoin price has been relatively steady these days, with upside bias prevailing following the recent plunge to the $18,600 area. The BTCUSD pair came off local lows and has been oscillating around the $20,000 mark this week, struggling for direction within a strong bearish trend that persists since November.
As the largest digital currency has steadied, market participants are wondering if the price has found a bottom already. For now, bitcoin is likely to stay in a consolidation phase before deciding on the further direction. The current range of $18,000-$22,000 could stay intact in the coming days. Of note, BTC was relatively resilient in the face of the recent jump in USD demand. The dollar surged to fresh twenty-year highs before retreating slightly in recent trading.
On the weekly charts, the price has formed a descending triangle pattern while the RSI stays below the 30 figure, signaling persisting oversold conditions. Still, bitcoin struggles to attract a more robust demand at this stage as the potential investors stay cautious and probably await lower levels to enter the game.
On the downside, the immediate support is expected at $19,300, followed by $18,700. Should these levels fail to withstand the pressure, the $14,000 mark will come into the market focus for the first time since November 2020. If the buying pressure reemerges, turning the $20,000 mark into support on sustained basis, BTCUSD will target the $23,000 level first.
Despite some positive signals, any strong recovery in the cryptocurrency market shouldn’t be expected any time soon due to its tight correlation with traditional financial markets. In turn, global stocks stay pressured by rising macroeconomic uncertainty amid stubbornly high inflation that makes major central banks tighten their policy in aggressive manner.