• Cryptocurrency market lost enough capital during the last crash and Bitcoin dominance may reach 47%.

• Support, Resistance and Liquidity Regions can give us a true outlook for the coming weeks.

According to third-party data, the overall cryptocurrency market has seen a significant net capital outflow of $1.30 billion over the past 30 days, indicating bearish sentiment or a risky environment where investors may be looking to reduce their exposure to cryptocurrency.

The negative news that happened during the week really hit the market hard and set off alarm bells for many traders. However, in these moments of uncertainty it is important to carry out a cautious analysis of the real structure of the market and mainly of Bitcoin.

Until the weekly opening, this asset had lost 10.65% and with a candle that threatens to follow the downtrend or provide a buying opportunity within a new candle, creating a bullish engulfing pattern.

Moving Average Kijun-Sen

Consequently, for positive terms, Bitcoin found favorable support between the 200-period weekly exponential moving average crossover and the Kijun-Sen pholego indicator, within an average closing value of approximately $25693.51 and $25666.41. Truly amazing closure.

In any case, the possibility that it could lose the previous support and culminate its trend by stepping on the 50-period simple moving average at exactly $23775.22 is not ruled out. For the extreme case of liquidity, reaching the simple moving average of 300 periods towards the weighted price of $20873.95.

On the other hand, if the bullish engulfing candlestick pattern is the next positive option that many traders will bet on, there is very strong middle resistance to being broken. That price average is between $26468.54, $26462.35 and $26994.47, with a weighted average in the exact price of $26778.74.

For bullish recovery purposes, massive purchases should be added to the moving average of volume above $27149.85. But only the uptrend will continue if there is a breakout of the 100-period exponential moving average at $27888.95 and Tekan-Sen at $28709.39.

For the same effect of ideas, it is worth remembering that there will only be a reversal trend with brute force when the weighted weekly moving average of 200 periods is exceeded and above the price of $30317.74. But the strongest resistance is found at approximately $31368.62. However, most momentum indicators point to prince correction.

Feeling To Buy Cheap

By the time this article was written, Bitcoin was holding at the support of $26123.41 and for intraday purposes. In that order of ideas, it is clear that for the next few days there will be an accumulation between the region of $26,872.88 and the mentioned support, but the possibility that Bitcoin could step on the medium pivot found between $25,021.74 and $24,756.96 cannot be ruled out.

In addition, it should be noted that it is very important to study the closest support indicated by the 300-period SMA at $24371.32 and the liquidity region that has been created above $23122.85.

Bears will be happy for now due to the support break. But for the purposes of trend reversal, we faithfully recognize that Bitcoin must touch the average pivot of approximately $25021.74 and evaluate the possibility of recovery until breaking the support line indicated by hearing the exponential moving average of 300 periods with a weighted price of $26872.56; follow the uptrend and break the relevant nine-period SMA at $27,884.69, along with the $28,507.41 region.

However, recovery will not be easy. The market as a whole is in a feeling of exhaustion that baffles many traders. Such action causes that open interest to decrease and many traders consider it better to lower their positions and trade more in the spot market.

Fearful Region Being Created

According to verified CryptoQuant trader joaowedson of DominandoCrypto, Bitcoin has been forming new pools of liquidity recently. In addition, there is a low leverage backlog between $23010.41 and $23531.85, which could form a spot bottom. There is also a long-term liquid region at $22533.41.

Therefore, we suspect that Bitcoin may be starting a new flat period, which could stretch for many days before a decision is made. Right now, several altcoins can stand out. If this really happens, we can expect new lows for Bitcoin.

Last article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Rubikkav.

Follow more market news and analysis on our main social networks: Wubits, Twitter, Facebook and Telegram.

In case you want to carry out crypto donations, you can do it in rubikkav.nft and rubikkav.cb.id wallet respectively. Your contribution helps further expand this project and reach more people who need a reliable and legitimate source of information.

Trade Binance Futures and Bybit automatically using artificial intelligence with the Cornix Bot. Win 15 days trial now here 👉🏼 https://t.me/cornix_trading_bot?start=ref-195e1582c11e4b7c99b3a35ff4fd4703.

If you have an article that can enrich our community or an advertising piece for a cryptocurrency-based project or product, please write to this email [email protected] or contact support directly on Telegram.

See our premium services at Registrations For New Premium Members Are Officially Open.