BTC Loses 15% Weekly, Will $20,000 Hold or Another Crash Ahead? (Bitcoin Price Analysis)

The instability of Circle’s USDC has caused extreme fear in the market as stablecoins play a crucial role in the cryptocurrency industry. Bitcoin’s price has been impacted by the recent turmoil and is down, but it is facing a strong support level.

By Shayan

The daily chart

Recently, bitcoin price experienced a downtrend with noticeable bearish momentum after forming a three-drive reversal pattern and breaking the neckline. The recent turmoil in USDC served as a catalyst for the bearish trend and pushed the price down to the $19,000 level.

However, the price is facing significant support at the 200-day moving average around $19.6k and is attempting to surpass it. This moving average is a strong support level and the bears might find it difficult to sink the price below it.

Despite this, the daily time frame suggests that the bearish momentum has weakened and a short-term consolidation phase may occur before the next impulsive move.

Source: TradingView

The 4 hour chart

Bitcoin’s price has seen a massive decline after breaking the critical $22,000 support level, resulting in consecutive big red candles. However, every impulsive trend requires a cool-down period in addition to a correction.

Bitcoin appears to have entered the mid-trend correction phase after hitting a crucial $20,000 price level. This level also serves as a sentimental support. Furthermore, the 61.8 level of the Fibonacci retracement for the recent uptrend coincides with the $20,000 support level, making it a sizeable level.

Source: TradingView

Therefore, the price can consolidate in the current region and form a corrective pattern before trending down.

By Shayan

The cryptocurrency market has once again entered a period of fear and uncertainty due to the recent turmoil at Circle and the collapse of SVB Bank. As a result, market participants capitulated and quickly sold their assets to manage their risks.

The Funding Rates metric provides insight into trader sentiment and has seen an impulsive decline recently, coinciding with a market shakeout in Bitcoin price. Traders need to be cautious and closely monitor the perpetual market in case of another sudden price move.

Source: TradingView

Despite this, the market can become very volatile in the coming days without any concrete direction.

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Cryptocurrency charts from TradingView.

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