BTC Update

2022年2月19日

Analysis done on daily candles. The high tension environment our world has experienced this year is weighing down on assets like Bitcoin, which has caused a market crash in the crypto markets. With many names more than 50% from their highs, investors are desperately waiting for Bitcoin to gain traction again in order to feel confident to add and rally. Crypto and stocks are two different asset classes that at one point didn't move side by side, but the political tension has brought both financial markets down to corrective territory. Throughout history we've seen political and economic pressures hurt markets, but markets have always turned around when the clouds cleared up. Looking at the technical analysis, BTC is trading right around its 40k support, which is a critical one for crypto markets in general. If 40k is broken they we may see a sell off to the next support range of 28k-33k. This is highlighted in red on the chart, because this was the reversal range from the first reversal of the correction, and if we break it then we'll decline to the low 20k. Of course this is the pessimistic view and worst possible outcome. On the upside, which is likely the case judging from history, BTC will need to test and break above 46k for a potential move back to 52k. Overall the coin is trading in a decent range and is not in critical territory.