Bitcoin (BTC) is facing a possible crash below $20,000 after recording a short-term rally on October 27 that saw the asset almost break past $21,000. The minor gains had placed the flagship cryptocurrency in line to exit the recent sideways trading that led to consolidation in the $19,000 – $20,000 range for weeks.
However, despite the minor correction, Kitco News analyst Jim Wyckoff on October 28 suggested that bulls are still in control after battling with bears to take charge.
Price action this week has seen a bullish upside breakout from the choppy and sideways trading range of the past few weeks. A fledgling price uptrend is in place on the daily bar chart. Bulls have the overall near-term technical advantage to suggest still more upside price action in the near term, he said. Bitcoin one-day candle chart. Source: Finbold
The bullish stand by Wyckoff aligns with the projection of crypto trading expert Micheal Van de Poppe. As reported by Finbold, Poppe noted that for Bitcoin to sustain its bullish momentum, the asset needs to stay above the $20,500 zone. Bitcoin technical analysis
At the same time, a review of Bitcoins technical analysis signals bullish sentiment for Bitcoin. Notably, a summary of the assets technicals indicates buy at 11, with neutral standing at nine, while six support the sell option. Related Over 70% of Bitcoin millionaires were wiped over three quarters in 2022 Over 5,000 new cryptocurrencies emerged in 2022 despite market crash Majority of institutional investors buy crypto because of its ‘high potential upside’
Elsewhere, moving averages at nine are for buy with neutral standing at one while selling is backed by five. Finally, oscillators are predominantly neutral at eight, while two are for buy, with one recommending sell. Bitcoin technical analysis. Source: TradingView Bitcoin price analysis
As things stand, Bitcoins short-term rally was a critical catalyst pushing the general cryptocurrency market to briefly reclaim the $1 trillion market capitalization. By press time, Bitcoin was trading at $20,300, correcting by almost 2% in the last 24 hours. Notably, the daily chart shows the price topped $20,700 before retracing. Bitcoin one-day price chart. Source: CoinMarketCap
Although analysts are bullish on Bitcoin in the short term, the current high inflation environment characterized by interest rate hikes might influence the assets next price action.
Indeed, the prevailing macroeconomic conditions are also partly acting in favor of Bitcoin. For instance, the declining British pound sterling (GBP) pushed the currency to undergo significant volatility. This scenario drove investors to opt for Bitcoin, as highlighted by increased BTC-GBP trading volumes.
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