Bitcoin was recently on a bullish spree making it to $19,200 between 4th-11th July. However, it failed to make up for its bear market losses previously.
Bitcoin prices have been falling to an extreme low ever since they reached a price of $69000 in November 2021. The prices touched as low as $17622 around June 2022, marking an all-time low in the bitcoin price history.
The subsequent rise of Bitcoin prices since then indicates $19200 as the horizontal area. The price range previously acted as a high-resistance point since December 2017. However, with the drastic changes in Bitcoin prices, this price now serves as the new horizontal support.
Though the weekly Relative Strength Index has hit an all-time low, it did not show any trace of bullish divergence.
Following the daily chart of Bitcoin prices, it is easy to map the descending resistance in the prices ever since March 2022. On 8th July 2022, Bitcoin prices failed to secure the minimum resistance; hence, the horizontal resistance area was rejected at $21,700, coinciding with the descending resistance area.
Though the Bitcoin price has been rising significantly compared to the previous price drop, a lower price level is expected. This is because the Bitcoin price lines reveal a conflicting nature of the prices, thereby offering a blurred future.
Hence, the sudden spike in Bitcoin prices does not guarantee a stable future and a secured investment option. Instead, investors and traders must monitor the nature of price trends following the horizontal support price closely to detect a bear market soon.
The wave count of Bitcoin prices also reveals an expected price fall soon. The wave of Bitcoin prices shows the prices are situated at the last wave of downward movement. This indicates a fall in the Bitcoin prices which can reach as low as $16,620 initially. If this low persists for an extended period, the prices can fall even lower to $13,100.
Thus, the sudden and stable rise in Bitcoin prices does not secure its future and ensure price stability. In fact, the trends reveal a further fall in Bitcoin prices in the upcoming weeks.