Bitcoin is Down 22% in 2 Weeks; Do BTC Bulls Stand a Chance?

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Bitcoin is down 22 percent from November 2022 highs and 34 percent from Q3 2022 highs. Although there were signs of encouraging recovery in early November, the drop of mid-last week punctured the market. It swung price action to tick for sellers.

For the better part of the year, Bitcoin has been on a downtrend as sellers press on, forcing lower lows. The drop to June 2022 lows at around $17.5k fueled all sorts of FUD. However, price drops to as low as $15.5k caused deep tensions, with some analysts expecting the worst. The coin is yet to reverse losses, and traders appear to be adopting a wait-and-see approach until either BTC slumps lower or edges above immediate resistance levels.

Crypto Market Conditions

The unfortunate collapse of FTX impacted liquidity and was one trigger that saw BTC drop. The effects of the rupture are still being felt, and it might take a while before market participants get the confidence to open trading positions. In addition, open positions with leverage have been gradually decreasing.

At the same time, trading volumes are comparatively lower, meaning traders are unwilling to commit and possibly profit from volatility. The collapse of FTT accelerated the contraction. Announcements from market titans like Genesis that they are halting withdrawals makes the market tighter, forcing users off trading. As it is, there is more open interest in Binance and OKX.

Bitcoin Price Analysis

The immediate trend is bearish, as BTC bears are still in command despite the higher highs of the past week.

The daily chart shows BTC prices are still inside the November 9 bear candlestick. However, there are high highs relative to the lower BB, pointing to decreasing downside momentum.

Still, as long as BTC is below the $17.5k and $18.5k resistance zone, coinciding with November 9, sellers are in control. Subsequently, aggressive sellers may unload on every attempt higher inside the bear flag, targeting $15.5k. Deeper losses below November lows would confirm sellers position, which will likely accelerate the dump to $12k in a bear continuation pattern.

Technical charts courtesy of Trading View. Disclaimer: Opinions expressed are not investment advice. Do your research.
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