According to a Blockware analyst Will Clemente, a pivotal moment for Bitcoin has arrived on the market, as the first cryptocurrency might fall back below $20,000 if it drops from the range it has been consolidating at for the last 5 days.
As the chart shared by Clemente suggests, Bitcoin is currently holding at the 200 WMA support line and the highlighted price range, which are the only two things keeping it from plunging back to the $19,000 level.
A drop below $22,000 might launch the digital gold back to the price level the market has not seen for the last two weeks. The main issue with the current state of BTC is the lack of short-term support zones that will protect the cryptocurrency from falling into the abyss once again.
Luckily, technical analysis is the only thing suggesting that Bitcoin is losing its grip on $22,000. Inflow data and the trading volume are still ascending, which are direct signals of continuous support provided to the coin by bulls.
Bearish news are not pushing Bitcoin down
Thankfully, the recently discovered facts of Tesla selling 75% of their Bitcoin holdings and of the sharp rate hike by the European Central Bank did not cause any abnormal volatility on the market, which is currently favorable for Bitcoin.
As the analysis suggests, Bitcoin needs a bit more time to consolidate at local support levels to show the market a more stable rally in the future, as larger retail and institutional investors are still not ready to make any significant inflows into the cryptocurrency market.
At press time, BTC is changing hands at $22,722 and showing a 1% gain in the last 24 hours.