- Bitcoin price is dancing in a narrow range between $18,000 and $19,500.
- Pressure continues to mount in the crypto market as investors steer clear of risky assets.
- The bulls need to hold the strong at $18,500 to cultivate a potential symmetrical triangle breakout.
After facing a tough week, Bitcoin price sits at $19,000. Various adverse external forces reduced the support recovery to around $18,000, forcing a rejection at around $19,500.
Most analysts are convinced that the Bitcoin price has already bottomed out, and the only way is up. However, investors seem to disagree and are looking elsewhere for opportunities amid rising interest rates to combat soaring inflation.
Bleeding in Bitcoin Mining Stocks Seems Unstoppable
Bitcoin mining stocks continued to wallow in troubled waters, widely attributed to the crypto market’s bear run. This week has been particularly difficult for most stocks globally, with the US Federal Reserve raising interest rates by 0.75%. The Bank of England (BoE) announced a slightly lower hike of 0.5% to combat soaring inflation in the face of high energy and food prices.
According to a stock market report by The Block, Marathon Digital Holdings, Iris Energy and Cipher Mining had fallen the most as of Friday’s market close. Losses were generally seen across all Bitcoin mining stocks as the price of BTC fell below the $19,000 mark.
Bitcoin stock performance chart
Since the start of the year, investors have cut their investment budgets in risky markets, citing soaring levels of inflation and tight monetary policy. This means that while Bitcoin price may have bottomed out, it lacks the momentum to sustain the recovery.
Meanwhile, the price of Bitcoin is gradually approaching the symmetrical triangle pattern, as shown on its daily chart. The direction of the potential movement is still unknown; therefore, traders should wait for a natural break above or below the pattern.
A bullish outcome is possible, but buyers need to defend the $18,500 level. The Moving Average Convergence Divergence (MACD) indicator buy signal adds credence to BTC’s tentative 9.5% move to $20,914.
BTC/USD four-hour chart
If the pressure is on and the selling pressure overwhelms the buyers at $18,500, an opposite breakout equal to $16,975 could come into play. Other downside targets are $18,050 and $17,450 for the traders eager to short BTC price.