Bitcoin (BTC) was seen circling around the $21,800 mark on Bitstamp, as data from Cointelegraph Markets Pro and TradingView showed. However, with the $22,000 level in danger of flipping from support to resistance, popular trader Pentoshi cautioned that further undoing of support may be on the horizon. In an update on a prior BTC price forecast, he wrote, “We made it. Best r/r currently, however not a fan of the slow bleed. Would have liked a SFP (one may still come). Below this can get ugly with 19.7-20.5k on the table.”
Pentoshi’s accompanying chart showed the significance of the current spot price zone within Bitcoin’s broader range, highlighting the potential consequences of the range if lost. This prompted other traders and commentators to also express their concerns regarding the bearish signal currently playing out in the form of Bitcoin’s 200-day exponential moving average (EMA). Based on historical patterns, Nunya Bizniz warned that room for losses remained, while Pierre inferred that there would be little stopping BTC/USD from dropping to its 100-day MA should a breakdown now ensue.
Data from the Binance order book showed a “busy” area of bid and ask liquidity surrounding the spot price, and with fresh US jobs data due, monitoring resource Material Indicators was bracing for volatility, though as yet it remained absent.
In a glimmer of hope, macro markets began climbing on the Wall Street open, with the US dollar losing ground gained earlier in the week. The US dollar index (DXY) was down 0.4% at the time of writing, while the S&P 500 and Nasdaq Composite Index both aimed for 0.5% increases.
Overall, BTC/USD was in a precarious position, with traders warning of further downward movements. The $22,000 level, which had previously provided support, now seemed to be turning into resistance, and traders were concerned about a potential breakdown that could lead to significant losses. The current spot price zone’s significance within Bitcoin’s broader range added to the concerns, with a loss of the range potentially resulting in even greater consequences. However, the situation remained uncertain, with a possible slow bleed or a sudden move still on the table.
Traders and investors alike should remain vigilant and monitor the market’s movements closely, with particular attention paid to the 200-day EMA and any further movements around the $22,000 level. With fresh US jobs data and potential volatility on the horizon, it is essential to remain informed and make informed trading decisions based on the available information.