The cryptocurrency market has been seeing capital outflows for months. The bears started to make an appearance when the bulls stopped being able to form new highs on indicators like the RSI even though they did make new all-time highs on price levels. The important thing in these cases is consistency, so we give the bears the benefit of the doubt.
It has been an intense 12 months, in terms of war conflicts and in terms of inflation and interest rate hikes. We have seen very aggressive positions by central banks, which have started to limit liquidity in the markets. Therefore, riskier assets have been hit harder. And the more liquidity is reduced in the market the more risky assets will suffer.
When will we see the floor? Hard to say, we have been asking the same question since the falls began. We can continue to mark ranges, we can continue to buy support and sell resistance in line with more microcosmic management principles. And not so much related to macroeconomics.
Right now, bitcoin BTC is holding above the 18,000 USD support area. It does not leave new lows with respect to June 2022, so we can speak of a good defence of the supports. Of course, buyers are running out of budget and a significant drop in the stock market may cause a new fall.
As the trend on daily and weekly charts is bearish, we can expect market traps and bounces, selling opportunities in downtrends. Also, if we see the loss of support, we can mark bearish continuations. But at the moment, all we see is a range.