- Bitcoin is fighting tooth and nail to hold above $19,000 and avoid possible losses to $15,500.
- The reduction in network growth since the beginning of September helps to validate the downtrend.
Bitcoin has bagged $19,000 again but failed to overcome the resistance at $19,200. The most critical level at $19,500 was not touched. Meanwhile, BTC is correcting towards $19,000 amid a bearish building momentum. The declines likely to come into the picture could be massive, perhaps extend to $15,500.
Bitcoin is drawing closer to a significant breakdown
The flagship cryptocurrency’s bulls are working tooth and nail to hold above $19,000. A freefall will come into play if BTC breaks under the ascending triangle’s hypotenuse.
The tentative sharp drop could overshoot other vital levels such as the 50 Simple Moving Average, the 100 SMA, and 200 SMA. Last week’s support at $16,500 might absorb some of the selling pressure. Otherwise, a break under the hypotenuse eyes $15,500. For now, the least resistance path is downwards, as highlighted by the Relative Strength Index.
%20(80)-637428423128423709.png)
BTC/USD 4-hour chart
A sharp slump in the number of new addresses joining the network adds credence to the bearish outlook. According to IntoTheBlock’s ‘Daily New Addresses’ model, the newly created addresses have dropped from roughly 616,000 on December 1 to nearly 472,000, representing a 23.4% decline.
Note that this metric helps to identify if the network is growing, stagnating, or falling. A decrease in network growth is a bearish indicator for both the price BTC and its network. Therefore, if the fall continues, BTC’s breakdown will be validated.
-637428423616272456.png)
Bitcoin new addresses chart
On the other hand, it is essential to know that the bearish outlook will be sabotaged if Bitcoin closes the day above $19,000. This will avert losses under the triangle’s hypotenuse. Moreover, trading above the x-axis might boost Bitcoin significantly above $20,000, perhaps to $23,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
Ethereum could retest $2,707 resistance following increasing ETF inflows and uptrend in funding rates
Ethereum traded around $2,640 on Thursday, up more than 2% following increased bullish bias among investors, as evidenced by ETH ETF net inflows and an uptrend in funding rates.
Ethena Labs launches new UStb stablecoin backed by BlackRock's BUIDL token
Ethena Labs announced on Thursday that it has released a new stablecoin product, UStb. The new stablecoin will be fully collateralized by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) and function similarly to a traditional stablecoin.
Crypto Today: Bitcoin, Ethereum and XRP trade in the green as crypto lost to hacks and fraud plunge by 40%
Bitcoin has moved above the $65,000 psychological level after flipping a key resistance, XRP sees a slight 1% gain. Ethereum trades around $2,650, up over 3% in the past 24 hours, as it attempts to tackle the $2,707 key resistance.
Bitcoin: Fed-led rally could have legs towards $65,000
Bitcoin is poised for a second consecutive week of gains, supported by the recent 50-basis-point cut in interest rates by the Federal Reserve. Bitcoin broke above several key technical resistances this week, signaling a rally continuation.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.