The Bitcoin price continues to trade in a tight range between the mid area around $18,000 and $19,500. The cryptocurrency has been moving sideways after a rejection from the $20,000 level which has led to a spike in fear and uncertainty across the nascent sector. <\/p>\n
At the time of writing, the Bitcoin price trades at $19,100 with a 2% profit in the last 24 hours and a 1% loss over the last week. The bearish sentiment and fear in the crypto market hint at a potential relief rally which might coincide with the macro forces influencing global markets.<\/p>\n
BTC\u2019s price moving sideways on the 4-hour. Source: BTCUSDT Tradingview<\/a> After last week\u2019s U.S. Federal Reserve (Fed) announcement of a new interest rate hike, the Bitcoin price has been dominated by selling pressure. Bears managed to push the cryptocurrency close to its multi-year low at $18,000.<\/p>\n These levels have been operating as critical support as BTC\u2019s price trends to the downside from an an-all time high of $69,000. As selling pressure gained momentum, Bitcoin has stayed about these critical levels.<\/p>\n Analyst Justin Bennett believes BTC\u2019s price is re-creating a price action displayed back in early 2022. At that time, the Bitcoin price was recovering from a massive crash and formed a channel between $37,500 and $49,500.<\/p>\n The cryptocurrency traded sideways inside this pattern for several months only to be pushed down by macroeconomic developments. This led to another massive crash in May 2022.<\/p>\n Bennett believes the Bitcoin price might be forming a similar channel since late June with $27,500 potential operating as critical resistance. As seen below, the analyst believes BTC hit the bottom of the pattern and might be prepared to re-test the top at around $26,000 before crashing below $18,000.<\/p>\n The analyst wrote: \u201cSame structure for $BTC as Feb-April, only we\u2019re missing a retest at $26,000\u201d.<\/p>\n BTC\u2019s price moving on a channel with a potential top at $27,500. Source: Justin Bennett via Twitter<\/a> Additional data provided by Senior Analyst for Messari, Tom Dunleavy, suggests the crypto market might benefit from a bounce in traditional markets. As the Fed hikes interest rates, risk-on assets, such as Bitcoin and stocks, have shown a high correlation.<\/p>\n (1\/5)Could be in for another rough week, but everyone always says a bottom comes when we reach peak bearishness.<\/p>\n Are we almost there?<\/p>\n Some interesting data points: In futures positioning, leveraged accounts are new short more than they have been in a year, by a wide margin pic.twitter.com\/VsXwFHj6na<\/a><\/p>\n \u2014 Dunleavy (@dunleavy89) September 26, 2022<\/a>\u00a0<\/p>\n At the time of writing, bearish sentiment in financial markets seems to be reaching levels last seen in 2020, during the start of the COVID-19 pandemic. This is usually an indicator of a market bottom and potential relief as short positions piled up in the market.<\/p>\n According to Dunleavy, the Put\/Call Ratio (P, a metric used to measure the number of call (buy) option contracts versus put (sell) option contracts is reaching a level of 1. This can be translated into a high bearish sentiment in global markets.<\/p>\n The last time the Put\/Call Ratio was at its current levels, the Bitcoin price and the crypto markets went into a multi-year bull run and entered price discovery toward an all-time high. While the current macroeconomic scenario might cap any bullish price action, the momentum could be strong enough to hit $26,000, as Bennett proposed.<\/p>\n Put To Call Ratio at its highest level since 2020. Source: Tom Dunleavy<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n The Bitcoin price continues to trade in a tight range between the mid area around $18,000 and $19,500. The cryptocurrency has been moving sideways after a rejection from the $20,000 level which has led to a spike in fear and uncertainty across the nascent sector. <\/p>\n At the time of writing, the Bitcoin price trades at $19,100 with a 2% profit in the last 24 hours and a 1% loss over the last week. The bearish sentiment and fear in the crypto market hint at a potential relief rally which might coincide with the macro forces influencing global markets.<\/p>\n BTC\u2019s price moving sideways on the 4-hour. Source: BTCUSDT Tradingview<\/a> After last week\u2019s U.S. Federal Reserve (Fed) announcement of a new interest rate hike, the Bitcoin price has been dominated by selling pressure. Bears managed to push the cryptocurrency close to its multi-year low at $18,000.<\/p>\n These levels have been operating as critical support as BTC\u2019s price trends to the downside from an an-all time high of $69,000. As selling pressure gained momentum, Bitcoin has stayed about these critical levels.<\/p>\n Analyst Justin Bennett believes BTC\u2019s price is re-creating a price action displayed back in early 2022. At that time, the Bitcoin price was recovering from a massive crash and formed a channel between $37,500 and $49,500.<\/p>\n The cryptocurrency traded sideways inside this pattern for several months only to be pushed down by macroeconomic developments. This led to another massive crash in May 2022.<\/p>\n Bennett believes the Bitcoin price might be forming a similar channel since late June with $27,500 potential operating as critical resistance. As seen below, the analyst believes BTC hit the bottom of the pattern and might be prepared to re-test the top at around $26,000 before crashing below $18,000.<\/p>\n The analyst wrote: \u201cSame structure for $BTC as Feb-April, only we\u2019re missing a retest at $26,000\u201d.<\/p>\n BTC\u2019s price moving on a channel with a potential top at $27,500. Source: Justin Bennett via Twitter<\/a> Additional data provided by Senior Analyst for Messari, Tom Dunleavy, suggests the crypto market might benefit from a bounce in traditional markets. As the Fed hikes interest rates, risk-on assets, such as Bitcoin and stocks, have shown a high correlation.<\/p>\n (1\/5)Could be in for another rough week, but everyone always says a bottom comes when we reach peak bearishness.<\/p>\n Are we almost there?<\/p>\n Some interesting data points: In futures positioning, leveraged accounts are new short more than they have been in a year, by a wide margin pic.twitter.com\/VsXwFHj6na<\/a><\/p>\n
\nBitcoin Price Forms A Bottom\u2026 For Now<\/p>\n
\nMacroeconomics Ready To Support A Bitcoin Price Relief Rally<\/p>\n
\nBitcoin Price Forms A Bottom\u2026 For Now<\/p>\n
\nMacroeconomics Ready To Support A Bitcoin Price Relief Rally<\/p>\n