Bitcoin Price Relief Rally In This Making? BTC Could Target $26,000
September 26 2022 - 11:26AM
NEWSBTC
The Bitcoin price continues to trade in a tight range between the
mid area around $18,000 and $19,500. The cryptocurrency has been
moving sideways after a rejection from the $20,000 level which has
led to a spike in fear and uncertainty across the nascent sector.
Related Reading: Chainlink Price Spikes Above $7 While Bitcoin
Sinks Below $20,000 At the time of writing, the Bitcoin price
trades at $19,100 with a 2% profit in the last 24 hours and a 1%
loss over the last week. The bearish sentiment and fear in the
crypto market hint at a potential relief rally which might coincide
with the macro forces influencing global markets. Bitcoin Price
Forms A Bottom… For Now After last week’s U.S. Federal Reserve
(Fed) announcement of a new interest rate hike, the Bitcoin price
has been dominated by selling pressure. Bears managed to push the
cryptocurrency close to its multi-year low at $18,000. These levels
have been operating as critical support as BTC’s price trends to
the downside from an an-all time high of $69,000. As selling
pressure gained momentum, Bitcoin has stayed about these critical
levels. Analyst Justin Bennett believes BTC’s price is re-creating
a price action displayed back in early 2022. At that time, the
Bitcoin price was recovering from a massive crash and formed a
channel between $37,500 and $49,500. The cryptocurrency traded
sideways inside this pattern for several months only to be pushed
down by macroeconomic developments. This led to another massive
crash in May 2022. Bennett believes the Bitcoin price might be
forming a similar channel since late June with $27,500 potential
operating as critical resistance. As seen below, the analyst
believes BTC hit the bottom of the pattern and might be prepared to
re-test the top at around $26,000 before crashing below $18,000.
The analyst wrote: “Same structure for $BTC as Feb-April, only
we’re missing a retest at $26,000”. Macroeconomics Ready To Support
A Bitcoin Price Relief Rally Additional data provided by Senior
Analyst for Messari, Tom Dunleavy, suggests the crypto market might
benefit from a bounce in traditional markets. As the Fed hikes
interest rates, risk-on assets, such as Bitcoin and stocks, have
shown a high correlation. (1/5)Could be in for another rough week,
but everyone always says a bottom comes when we reach peak
bearishness. Are we almost there? Some interesting data points: In
futures positioning, leveraged accounts are new short more than
they have been in a year, by a wide margin
pic.twitter.com/VsXwFHj6na — Dunleavy (@dunleavy89) September 26,
2022 At the time of writing, bearish sentiment in financial
markets seems to be reaching levels last seen in 2020, during the
start of the COVID-19 pandemic. This is usually an indicator of a
market bottom and potential relief as short positions piled up in
the market. According to Dunleavy, the Put/Call Ratio (P, a metric
used to measure the number of call (buy) option contracts versus
put (sell) option contracts is reaching a level of 1. This can be
translated into a high bearish sentiment in global markets. Related
Reading: China Reports GPU Price Fall To All-Time Low Post Ethereum
Merge The last time the Put/Call Ratio was at its current levels,
the Bitcoin price and the crypto markets went into a multi-year
bull run and entered price discovery toward an all-time high. While
the current macroeconomic scenario might cap any bullish price
action, the momentum could be strong enough to hit $26,000, as
Bennett proposed.
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