Bitcoin has been cruising sideways recently, but could it be gearing up for another big move?
Risk assets like stocks and crypto are trying to stay afloat now that major central banks are on a tightening spree to ward off inflation.
It doesn’t help that investors can’t stop buzzing about the R-word among top economies, which might bring more downside for higher-yielding assets.
Does this mean that “crypto winter” ain’t over yet?
Better keep these BTC/USD levels on your radar!
BTC/USD: 1-hour
BTC/USD 1-hour Chart
Bitcoin made a couple of failed attempts to bust through the $22,000 area over the past week, retreating back to the key $20,000 level and forming a double top.
A break below this neckline could confirm that a downtrend of the same height as the chart pattern is in the cards.
Is this bound to happen anytime soon?
A quick look at technical indicators gives some flashing red signals, as Stochastic is on the move down to reflect bearish pressure.Since it has some ground to cover before reaching the oversold area, sellers might still have enough energy for a break lower.
To top it off, the moving averages are going for a bearish crossover to confirm that support is more likely to break than to hold. If that happens, bitcoin could make a beeline for the next floor close to the $18,000 mark.
On the other hand, if bulls continue to hold the line at $20,000, BTC/USD might have a shot at bouncing back to the nearby resistance levels, including these bitcoin pivot points.
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