Bitcoin Technical Analysis & Price Forecast: a gloomy chart picture, but a short-term recovery is imminent

Bitcoin has had a rollercoaster ride over the past few months, but it’s mostly going south. The recent downturn has been a significant concern for investors at first, only to come up in some way with the price of BTC above the $ 20,000 level. So let’s take a look at the current Bitcoin price forecast and use a technical analysis that shows possible scenarios for BTC price.

Current Bitcoin price: the starting position

After the Bitcoin price peaked at nearly $ 65,000 in November last year, the value of the largest cryptocurrency has fallen sharply since then, losing about 70% of its value in a few months. Total sales were already feared when the digital signal fell well below the $ 20,000 mark.

After that, however, the price stabilized for a short time before falling again in the last few days. While the exact reasons for the recent decline are not clear, some analysts believe it may be due to fears of a global recession and persistent fears of inflation. A direct link to the interest rate policy of the Fed and the ECB is much clearer. Whatever the reason, recent volatility has brought to mind the risks of investing in Bitcoin.

Technical analysis of Bitcoin price: probable short-term recovery

Bitcoin seems to be breaking the channel below at the moment, with the price falling below the 200MA. In the short term, this story is not even tragic. It seems that further recoveries could be made in the coming days and weeks.

Bitcoin is currently in the oversold zone on the Bollinger Bands indicator on the 4 hour time frame. This means that the cryptocurrency has struggled with increased sales pressure and while there is a risk of further decline, it is less optimistic.

In addition, the 30-minute chart has a sequential reversal signal, suggesting a near-term floor price may be in effect. Finally, the price is also oversold on the RSI indicator, which is another sign that a near – term recovery could be on the horizon for BTC.

In the medium to long term, however, investors should not be given much hope. The volume of trade increases significantly as the price falls. Investors seem to be getting nervous, and this could be a sign of another decline in the price of Bitcoin. The 200MA mentioned is a key support level, and if it breaks, the price of Bitcoin could continue to fall. Should that happen, there is a lack of meaningful support zones.

One real support at $ 10,000

It could be argued that the next level of support is the $ 10,000 level. If this level breaks, the price of bitcoin could fall more to $ 8,000 or less. However, if the $ 10,000 mark is held, the price of Bitcoin could rise again. But before you paint the devil on the wall, it’s important to keep an eye on current developments. In the last 5 days, bitcoin has lost 2% and is now trading at $ 20,600. The bottoms will not give up their psychological support zone easily.

However, we remain of the view that the overall trend is bearish and that any recovery from this will eventually be short – lived. The next key resistance level to watch for is around $ 22,000 and we expect the price to struggle to stay above this level. We believe BTC will continue to fall after a potential resistance test as sellers remain in the lead.

Following recent signs of recession, this downturn is likely to continue. The price has also broken out of the oversold RSI zone, another indication that the price will continue to fall. However, it should be noted that volatility has declined, which may mean that the price fall may not be as dramatic as expected.

Uncertainty factors are great

The problem that is now more obvious with Bitcoin than has rarely been argued before is that the monetary policies of most central banks around the world are still focused on printing and mitigating money. quantitative. Bitcoin has long been sold as a solution to inflation, but the cryptocurrency does not seem to be able to keep up with this damage at all. As we know, once it is opened, it is very difficult to close Pandora’s box and stop easy cash flow. Bitcoin is not an alternative or solution here, but the end of the investment pole on global finance.

I thought I was late until #bitcoinbut apparently not.

– Michael Saylor⚡️ (@saylor) June 27, 2022

So the key piece of advice is to be careful when trading Bitcoin and other digital assets, because we will see a rebound in the price of Bitcoin if central banks start tightening further monetary policy. This is exactly what has finally happened in recent weeks, and that is what prompted the fall in the price of BTC in the first place.

Still, it’s a good idea to keep an eye on the market and look for opportunities to buy low and sell high. Bitcoin remains a highly speculative asset and in such a case it makes sense to invest money in well-functioning hedge assets in a period of rising inflation.

How to invest in the Bitcoin Alternative DEFC

DeFi Coin (DEFC) may be an interesting crypto alternative for BTC right now. Here investors can participate in a real betting base that promises high returns.

Step 1: Buy BNB or DEFC with a credit card

The first step, of course, is to buy the desired cryptocurrency. You can buy Binance Coin (BNB) and DeFi Coin (DEFC) easily and quickly with a credit card through the official homepage and Defi Swap.

Step 2: Use your tires in liquid farming

After buying the cryptocurrencies, it’s time to use them for rewards. The DEFC offers one of the highest annual returns in the crypto space at around 20%. All you have to do is keep your coins in a personal wallet and you will automatically receive rewards. The best way to do this is to connect the Metamask wallet to the platform.

Step 3: Collect returns

Now you deposit the coins for a certain period of time and you automatically receive interest payments on them. The great thing is that you can decide for yourself how long you want to block the coins.

This way, you will automatically become a liquidity provider and help fund the network. In return, you earn a nice passive income that increases your total return.