Crypto analyst Filbfilb, known for his successful forecasts from Decentrader, says that support and resistance aside, it’s all about the annual pivot of Bitcoin price action. Also, according to new research, Bitcoin (BTC) is at an important turning point and in the coming months, Decentrader states that more attention should be paid to Bitcoin’s ‘yearly pivot’ price.
All eyes for Bitcoin at the annual pivot
, after finding support at $43,000 in two retests this month as reported by Cryptokoin.com, Bitcoin reversed direction around $50,000, piercing market sentiment. The move below the opening price of $46,200 for 2022 has been particularly difficult to swallow, as BTC has marked the price resistance ceiling since Jan.
When lower levels are revisited, calls for $40,000 or less are emerging, but bull holding territory for Decentrader is already here. This coincides with the annual pivot, a price level of around $43,500 in 2022. Stating that Bitcoin was rejected from the Annual Pivot, a level that has not been broken in any of the last 4-year cycle bear markets, analyst Filbfilb adds:
While this is highly probable, the main support/resistance level of around $43k per week is reached. The breakout has been a disappointment for bulls who have been injected with hopium.
BTC chart with annual pivots marked / Source: Decentrader If the current scenario really represents a “bear market” phase for BTC, a close above the pivot is not just bullish, especially on higher timeframes it will also be a historically unusual event. Filbfilb evaluates this situation as follows:
A break above the annual pivot will be a break from the 4-year cycle norm. This could indicate that Bitcoin is heading for significantly higher prices. But in the short term, the weekly level needs to be supported by the bulls. To avoid a return to consolidation,
Liquidity shows the potential for a squeeze in either direction remains high
Looking beyond the pivot, the coming months will be a tight fit for central bank policy as inflation bites and steps to combat it intensify. seems connected. Analysts agree that the US Federal Reserve’s balance sheet cuts will likely put pressure on stocks and risk assets, arguing that Bitcoin will lose its appeal because of this. Filbfilb also agrees on these strong headwinds, arguing that the Fed’s action could influence BTC price action in the coming months.
However, how low Bitcoin can go may depend on liquidity levels. Sentiment via derivative funding rates continues to move up despite weakening spot price action, increasing the possibility of a downside liquidation echelon. This week has been the largest long liquidation since January, data from on-chain tracking resource Coinglass shows.
Crypto liquidation chart / Source: Coinglass Filbfilb says liquidity both above and below the spot price means the potential for a squeeze in either direction remains high and the potential upside target is still He states it’s over $50,000. You can see the accurate predictions that the analyst has made before in this article.
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