The price of Bitcoin must avoid falling below this level or the BTC could collapse to $ 20,000

  • The action of bitcoin prices remains distinctly bearish.
  • Critical levels of support must be maintained or the BTC will face a major collapse.
  • Potential upwards remains a possibility, but the bulls must show conviction.

The Bitcoin price action closed the candlestick on Friday with the lowest daily closing since January 24, 2022. Continued sales pressure and weakness remain the most likely behaviors for Bitcoin until the bulls decide to continue to support BTC.

The price of Bitcoin is approaching a large zone of capitulation

The action of bitcoin prices may hint at a test of the final critical level of support on its chart: $ 33,350. $ 33,350 is the volume control point for 2021. VPOC is where most buys and sales are made and is probably one of the strongest levels of support and resistance in all technical analysis.

The $ 33,350 position is extreme and has a common value with the volume profiles for 2021 and 2022. $ 33,350 is the lowest value in the 2022 profile. For Volume Profiles for 2021, $ 33,350 is the volume control point and is only a hair above the minimum values from 2021. Below $ 33,350 there is a real risk of debt.

A look at Volume Profile 2020 shows that the next high-volume node does not appear before $ 20,000. This is important to recognize because analysts interpret price behavior using the Volume Profile. The expected behavior of the Bitcoin price, if it spends some significant time below the VPOC at $ 33,350, is a rapid decline towards the next high volume node in the $ 20,000 – $ 24,000 range.

BTC / USD Daily Chart Ichimoku Kinko Hyo

If the bulls want to deny any further negative risks or alleviate any immediate uncertainty, then they will have to meet one of two conditions. The first is to ensure that the weekly candlestick closes above $ 36,859. If the Bulls fail to close at or above $ 36,859, then Chikou Span will close below the Ichimoku Cloud on the weekly chart for the first time since May 18, 2018. It would also be only the third time Bitcoin history has Chikou Span closed under the Ichimoku Cloud after the Ichimoku Cloud after bull races.

A clear denial of any further fall swing can be achieved by confirming Ichimoku’s ideal bullish breakthrough. That would only happen when the price of Bitcoin closes at or above $ 44,650.

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