Bitcoin has retaken the $19,000 level once more but has failed to overcome resistance at around $19,200. Notably, the most crucial level located at $19,500 was not touched this time around. In the meantime, bitcoin is correcting gradually towards $19,000 as the bears continue to build their momentum. The declines that might happen are massive and may extend to $15,500.
The biggest crypto’s bulls are working hard to hold above $19,000. But, a freefall might come into play if bitcoin breaks under the ascending triangle’s hypotenuse. The expected steep plunge may overshoot other critical levels including the 50 Simple Moving Average, the 100 SMA, and 200 SMA.
Interestingly, the past week’s support at $16,500 might absorb some of the selling pressure. Otherwise, any form of break under the hypotenuse eyes $15,500. Today, the least resistance path is downwards as shown by the Relative Strength Index.
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A steep decline in the number of new addresses joining the network adds credence to the bearish outlook. Based on IntoTheBlock’s ‘Daily New Addresses’ model, the newly created addresses have plunged from around 616K on December 1 to almost 472K, representing a 23.4% drop.
The metric helps in the identification of network growth, stagnation, or falls. A decrease in network growth is a renowned bearish indicator for the BTC price and its network. Hence, if the plunge continues, bitcoin’s breakdown will become validated.
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On the flip side, it is important to know that the bearish outlook will get sabotaged if bitcoin continues to consolidate above $19,000. That scenario will avert losses under the triangle’s hypotenuse. Additionally, trading above the x-axis may enhance bitcoin significantly for it to challenge the $20,000 and maybe $23,000 levels.
Source: cryptovibes.com