- Bitcoin price is floating around without a strong conviction of direction.
- BTC price needs to overcome two bearish elements before bulls can gear up.
- Expect more sideways price action as traders must make up their minds.
Bitcoin (BTC) price is trading sideways for the second week in a row as two bearish caps are still hanging over the price action while the price action itself is not making new lows. Seeing the current market turmoil with the forex market for pound sterling hitting a new low in over 30 years, equities in a bear market and the situation in Europe entering a higher phase in its tit-for-tat war with Russia, it does not look like there is a real catalyst for Bitcoin price to move upwards. Expect to see price action floating, awaiting that catalyst next week or the week after, in favor of a break to the downside.
BTC price expect to trade sideways in the waiting game
Bitcoin price is trading a bit as if traders are puzzled on what to do next as several tail risks are hanging over the price action while BTC price itself is trading in profit. This points to not much conviction from traders in a rally as the upticks do not see any follow-through; it could be common sense to see the current negative elements and tail risks escalating further into levels not seen in multiple decades.
BTC price is thus handed over at the mercy of the markets, and seeing a perfect storm brewing, this could be the eye of the storm. With markets currently licking their wounds and seeing pullbacks from those multiple-decade-lows, expect to see some sideways price action for now. Once one tail risk escalates another level higher, be it Russia, the UK or any other country or entity, expect a sharp drop in BTC price towards $16,020.
BTC/USD Weekly chart
Traders could be seen buying into the price action slowly but surely as possibly the markets have reached rock bottom and, with that, the awaited turning point. Should buying into the price action trigger a breakout to the upside above the 55-day Simple Moving Average (SMA). That would be the ideal breakout scenario and will see follow-through into next week certainly should equity markets back that move by trading away from bear market territory and creating tailwinds for cryptocurrencies.
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