Bitcoin is fast approaching a critical intersection of macro support, according to a crypto analyst.
Macro support critical intersection
As a Bitcoin analyst pointed out on Twitter, the cryptocurrency is approaching an intersection with a macro support curve.
BTC macro support curve | Source: TheCryptoCactus
The graph above shows how Bitcoin performed relative to the macro support curve.
Now there is another chart below that highlights the two important areas of BTC price.
Bitcoin's two price ranges of interest | Source: TheCryptoCactus
One notable feature on the graph is the wicks that BTC placed in the lower band of Range 1.
Range 2 is Bitcoin’s previous all-time high (ATH). It is currently valued at around $ 19,000. It can be the main macro line of support.
If the price falls below the final ATH range, it could be a signal that the market has taken a bearish turn and the price will continue to fall.
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However, as the wicks show, buyers are still trying to accumulate and keep the range. As long as the feeders absorb the pressure, the margin is not lost.
There are currently two scenarios that can happen with Bitcoin. The next diagram will help you present them.
Where can the BTC market possibly head to next? | Source: TheCryptoCactus
The first scenario is that amid all of the FUD and raids (like Binance’s), buyers continue to absorb the pressure and hold that range. Meanwhile, the price gradually rises into the next range.
The other way out of this range is for Bitcoin to drop below the $ 30,000 mark and that price point becomes a resistance line.
The latter scenario will mean that the price will drop sharply and it will be difficult to return from it. And as mentioned earlier, if BTC crosses the final ATH support line of $ 19,000, a bear market can potentially prevail.
At the time of writing, BTC is down nearly 6% in the past 24 hours, with the price just below $ 33,000. In the last week the value has fallen by around 2%.
Here is a graph showing the trend over the past 6 months:
BTC gains slight downwards momentum | Source: BTCUSD on TradingView
Bitcoin’s price appears to be falling again as the cryptocurrency hit the $ 32,000 mark on Thursday.
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The market price must be kept above $ 30,000 for an uptrend. If the price continues to drop and the USD 19,000 support is lost, the market could very well turn bearish.
Featured image from Unsplash.com, charts from TheCryptoCactus, TradingView.com