Crypto analyst Akash Girimath states that Bitcoin price is currently retesting the 200-week SMA at $22,794 and expects a small bounce. According to the analyst, there are three trading opportunities BTC offers, two of which support the bears. We have prepared Akash Girimath’s Bitcoin analysis for our readers.
Ethereum Merge, Bitcoin price relationship
Bitcoin price has been bearish since the July 30 swing high rejection at a key resistance level. This development pushes BTC to slide lower and retest key support bases. This points to the potential to move further south.
As you follow on Kriptokoin.com, Ethereum Merge is approaching. Altcoins are rising due to the Merge upgrade. Therefore, investors need to consider the possibility of BTC being out. However, it is possible that a sudden drop in Bitcoin price could negatively impact the ongoing altcoin rally.
“Bitcoin price bears fruit for patient traders”
From a higher time frame view, Bitcoin price shows an ascending parallel channel formation since the June 18 crash. Interestingly, it is possible that the same thing could be seen happening since the beginning of 2022.
Currently, BTC is hovering around the $22,800 support confluence of the 200-week Simple Moving Average (SMA) and the 30-day Exponential Moving Average (EMA). The rejection at $24,565 led to a dip that pushed BTC to retest this support confluence. A breakdown of this level will pave the way for further progress further south. In such a case, market participants can expect BTC to drop to $21,177 by 2022, the highest volume traded for checkpoint (POC).
BTC 1-day chartFirst trading opportunity for Bitcoin
Let’s take a closer look at Bitcoin price on the one-hour time frame. This chart suggests that BTC formed the $23,508 and $22,875 range on Monday, further pushing the range low, suggesting the possibility of a reversal. Additionally, BTC is supported by the 200-week SMA at $22,794. It also gives confidence in the possibility of a quick uptrend.
Therefore, the first trading opportunity is to keep Bitcoin price long after a quick recovery above Monday’s Low (ML) at $22,875. Monday’s High (MH) is to take a partial profit of $23,508. The remaining amount can be sold at the one-hour Fair Value Gap (FVG), meaning a price inefficiency of $24,347. It is possible for the stop-loss to be dynamic for this trade. So, a four-hour candlestick closing below the 200-week SMA at $22.794 will indicate the presence of selling pressure. Therefore, it will indicate the closing of the long position.
BTC 1-hour chart
Second trading opportunity for leading crypto
This trade assumes that Bitcoin price fills FVG at $24,347. This will be a signal to open a short position. The rationale behind this bias was derived from the high timeframe chart at the beginning of the article. Partial profits for this short position can be taken at $22,794 at the 200-week SMA as a small bounce could occur here.
A break of the support confluence at $22.794 will add confidence to our short position. It is possible to close the remaining position at $21,730 in one-hour FVG. In total, this move will create a 10% drop.
BTC 1-hour chartThird trading opportunity for BTC
This trade is basically valid if the #1 trade opportunity does not appear. So what if Bitcoin price produces a four-hour candlestick below the 200-week SMA at $22,794? In such a case, traders can expect BTC to retest the newly flipped resistance level.
The rejection at the 200-week SMA will act as a secondary confirmation. In this case, traders can open a short position with a stop-loss place generously above MH. The target for the third trade is the same $21,730 for the second trade.
BTC 1-hour chartUnlike the first or second trade, the third trade carries high risk due to uncollectible liquidity and upside price inefficiencies. Therefore, market participants need to consider all possibilities before taking action.
11979
