Bitcoin (BTC) Price Drop Analysis: Slow Bleed Continues

The crypto market is crashing. However, the Bitcoin (BTC) is holding up a lot better, with a much slower bleed out in comparison with the altcoins. Is this bleed out going to continue, or is a bounce on the way?

Are market makers taking advantage of all the uncertainty?

The global economic picture as well as the geopolitical scene are still wracked with uncertainty. Trade tariffs are still being levied by countries looking to either level a playing field or as a response to tariffs imposed upon them.

A Russian delegation has begun peace talks in Riyadh in Saudi Arabia with U.S. officials. The outcome of the ongoing war in Ukraine will potentially be decided by what transpires in this meeting.

Traditional markets are still riding high, at least in the United States. The S&P 500 is just short of a new all-time high, and the tech-heavy Nasdaq exchange is currently at a breakout level.

If tariff talks can make some quick progress, and an acceptable agreement can come out of Riyadh, this would potentially do wonders for the stock market, and probably have a very positive effect on Bitcoin.

If, on the other hand, the US, or its trade counterparts, decide to up the ante on tariffs, or deals take a long time to work out, this could have a dampening effect on economies. Also, regarding the war in Ukraine, Europe, and Ukraine itself, are likely to want to have their say, and may well complicate an eventual deal.

Buffeted by all these economic factors, plus many more, the Bitcoin price has continued to bleed downwards. Could market makers be taking advantage of all the uncertainty to bring Bitcoin lower and buy up the coins from those selling? Quite possibly.

$BTC price continues to roll over

Source: TradingView

The short-term time frame shows that the $BTC price is continuing to roll over after breaking through the top of the descending wedge. If this downtrend keeps going, the next horizontal support is at $94,000, and then the bottom of the range is at $92,000. Just below this is the major ascending trendline that stretches back to the 2021 bull market.

Even if the price does go back to any of these levels, all of this downside could just be considered as sideways price action in the grand scheme of things.

Uptrend still intact on the weekly

Source: TradingView

The weekly chart for $BTC shows how the price has gone sideways over protracted periods of time already in this current bull market. This is extremely healthy, and will potentially lead to a higher top than if the price just keeps going up and up.

The bear might say, looking at this chart, that an M top chart pattern may be playing out. Of course, this is always a possibility. However, until such time as the price falls and confirms below the current range, the bottom of which is bolstered by the ascending trendline, the trend is still upward.

At the bottom of the chart, the Stochastic RSI, which signals price momentum, has its indicators reaching their lowest point. When they turn back up and pass over the 20.00 level, renewed upward price momentum can force $BTC out of the current range and up to the next level. This could potentially start to take place in the next two or three weeks.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Text source: Crypto Daily™

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