The week of the Merge was heavily anticipated by the entire crypto world. And on September 15, 2022, Ethereum became fully Proof of Stake. Initially, market speculators predicted Ethereum and the entire market would probably have a post-merge run. However, it was not to be.
Bitcoin ruined the party and crashed by about -5%, dragging the whole market down with it. Here is what to expect next week on Bitcoin price.
Last week, Bitcoin was still trending below the $20k mark. Our verdict for this week was Bullish, mainly due to the Ethereum Merge. Bitcoin started the week well after September 9 and even pushed up a further 6.48% to reach $22,781.
However, on Tue Sep 13, 2022, Bitcoin crashed below the $22k mark after the United States Consumer Price Index (CPI) data for August came in higher than expected. The 12.83% crash set BTC at $19,862.
In just two days, Ethereum would Merge, and this piece of news would certainly push up Bitcoin’s price. Or would it?
September 15 came, and Bitcoin slumped a further -2% from its September 13 low, setting it at $19,500. Traders had been successfully ‘Stop Hunted’ at athe $21.5k level.
Bitcoin Price Next Week
Bitcoin now faces hefty sell pressure as the market looks forward to a negative report from the FOMC meeting next week on September 21. $19,500 proved to be strong support as it previously supported BTC price for more than a week before giving in to pressure from the bears.
On the other hand, Bitcoin is still displaying a common chart pattern breakout. From this angle, we can say the asset simply broke out and is currently on a retest before bouncing back up.
A full retest could see Bitcoin re-visit the lower $18k range before bouncing back up. The bounce would also be epic as it would be nothing short of +25%. Targets to look out for in the coming week are $18590 to $19,000 and $17,987 on the lower side.
If bulls put up a fight, then the target to watch out for is the $21,580 to $21,900 range.
Verdict Next Week: Bearish
Verdict September: Bearish
Stop Hunt – Stop hunting is a strategy that attempts to force some market participants out of their positions by driving the price of an asset to a level where many individuals have chosen to set stop-loss orders.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.