For over a week, the price of BTC has been hovering around a crucial psychological threshold. While the latest sell-off may appear to be significant, the macro perspective indicates that there is yet more selling to come.
Several indicators indicate that BTC may be nearing a bottom, which will be followed by a long period of consolidation. After plummeting over 60% from its all-time high of $69,000, bitcoin is again hanging around the $30,000 mark. This downswing established a temporary bottom at $26,591 and also signified the end of the bear flag pattern. By adding the flagpole’s altitude to the breakout point at $37,660, this continuation pattern predicts a 52 percent downswing to $17,803.
Reports Suggest That BTC Prices Could Drop Further
In addition, the weekly chart below displays the volume profiles for 2020, 2021, and 2022, as well as visible region volume profiles spanning 2019 to 2022. The volume point of control (POC) is the price level at which the largest volume was traded, indicating that the price is more likely to encounter support and resistance. The current downswing has sunk below the 2022 POC of $32,480, indicating that the downturn is still quite strong.
The most important data, however, comes from the 2020 and 2021 profiles, which indicate a discrepancy ranging from $11,891 to $29,424. The market’s exponential move when it filled the gap caused by market price inefficiencies created this “Void.” As the BTC price investigates these inefficient sectors, investors will have the opportunity to buy BTC at a discount. $29,000, $19,500, and $12,000 are the most crucial purchase levels. Anywhere between $19,500 and $12,000 would be a good purchase zone with the lowest risk and the best chance of a swift reversal.