Since breaking below $19,000, Bitcoin (BTC/USD) has been unable to recover above the important psychological level. At press time, the cryptocurrency is trading just above $16,000, the lowest level since the FTX collapse. It’s been almost two weeks now, and BTC price is consolidating at this yearly low. Will it get better in the next few days?
It is hard to tell if BTC will find an uptrend as crypto sentiment remains weak. Beyond the FTX-induced crash, BTC remains a key barometer of global economic health. Central banks are tightening their belts with rate hikes to tame high inflation. The situation is looking bleak, it may take us some time to find the right balance to take BTC higher.
Once again, BTC’s decline below $19,000 signals that a bottom remains to be found. Is a low at $16,000 a possibility, or can we see further downside below this level? A possible breakout is imminent which may help answer the question. Let’s turn to technical levels and price action:
BTC Eyeing a Potential Bearish Inside Bar Breakout at $16,000
On the daily chart, BTC is trading with a weak momentum near the $16,000 support. The MACD indicator shows a strong bear market for BTC. Multiple pin bars are formed at the level, indicating indecision in the market.
What is likely to happen for BTC?
There are likely to be two possible scenarios for btc price In the coming days. If the bulls successfully defend the $16,000 level, it will set BTC up for a recovery to $19,000. An improved market outlook or momentum will strengthen the bullish market. Confirmation on the upside would require a bullish signal from the key support area.
On the flip side, if the bulls fail to hold the $16,000 level, bitcoin could decline towards $11,000. This is a more likely outcome given the weak momentum on the current BTC price. In the bears scenario, a bearish breakout of the inner bars forming at $16,000 would be confirmed. This will give the bears control to short BTC.
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