- Bitcoin price is currently retesting the 200-week SMA at $22,.794, anticipating a minor bounce.
- There are three trade opportunities that BTC presents, two of which favor the bears.
- A daily candlestick close that flips the $24,565 level will invalidate the bearish thesis.
Bitcoin price has been on a downswing since the July 30 swing high rejection at a significant resistance level. This development has pushed BTC to slide lower and retest crucial support floors while hinting at a potential for a further move south.
With altcoins rallying due to the upcoming Merge upgrade, investors need to consider the possibility of BTC being left out. However, a sudden downturn in Bitcoin price could adversely affect the ongoing altcoin rally.
Bitcoin price bears fruit for patient traders
Bitcoin price from a higher-time-frame outlook shows the formation of an ascending parallel channel since the June 18 crash. Interestingly, the same can be seen happening since the start of 2022.
Currently, BTC is hovering around the support confluence made up of the 200-week Simple Moving Average (SMA) and 30-day Exponential Moving Average (EMA) at $22,800. The rejection at the $24,565 level has led to a downswing, which has pushed BTC to retest this support confluence.
A breakdown of this level will open the path for a further move south. In such a case, market participants can expect BTC to crash to $21,177, which is the highest volume traded for 2022, aka point of control (POC).
BTC/USDT 1-day chart
Here's a detailed video explanation for the above chart.