Bitcoin did it! The asset fully filled down to $21.2k on the wick and crypto Twitter was lit with speculators calling sub $10k prices while others hoping BTC will consolidate at the $21K – $22K range.
We have been following Bitcoin’s price with our own analyses which have been on point for most of the journey. Let’s dive in and see what’s in store for Bitcoin this coming week.
Previous Analysis
As of Friday, August 12, 2022, BTC was trading at $24,014. However, the asset was in a rising wedge. Rising wedges have a 68% chance of wreaking to the downside, and hence, Bitcoin was looking at a high likelihood of crashing. If it did, the price target would be $17,367.
As of Friday, August 19 09:47 UTC 2022, Bitcoin was trading at $21,695 – a clean break from the rising wedge.
Bitcoin Price Next Week
The 3-day -10% drop in the price of Bitcoin put it below the 21-day EMA. The asset is now moving further away from the 200-day moving average. If the bears should persist, then Bitcoin will hit $18,910 by the end of next week. Beyond this, the other support regions are $17,367 and finally the $12-$14k region.
Kaleo, a Crypto Options trader on Twitter with over 500,000 followers, thinks Bitcoin is going to consolidate around the $21k – $22k region before bouncing to higher highs.
“Bitcoin / $BTC. Finally got the break beneath $23K. Waiting for a fill in the $21K – $22K range before expecting a bounce.”– @CryptoKaleo –
There have been rumors that a black swan event is coming with the unlock of Mt. Gox Bitcoins in which 137,000 BTC may go to creditors of the Mt. Gox exchange in 2013. It is anticipated that the unlock will happen in the next 12 days from August 18, 2022. This unlock may have more catastrophic effects on the markets compared to Elon’s and Do Kwon’s dump, which combined, caused the market to crash from $40k to below $20k.