Bitcoin on April 23, 2022 – An inevitable relapse to the lows of the year?

Another broken bracket! – Thought to be safe from a new weekly drop, the wind has once again swept over Bitcoin (BTC). Indeed, the Fed’s recent announcements about its monetary tightening have wreaked havoc on all risky asset classes. And given that the S&P 500 and the Nasdaq closed at their lowest for the week, this correlatedly thwarted the attempted rebound of the king of cryptos initiated on Monday.

With the movements of Thursday and Friday, the validation of the breakout of a key support would seem to be taking shape at the risk of seeing BTC prices approaching its lows of the year. So much so that the trend since its last ATH in November 2021 would be passing a milestone. And this, in a way that is not reassuring for cryptocurrency investors.

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Bitcoin – Below Kumo Lower Bound in Weekly Units?

Zoe de la Roche’s latest BTC Bulletin mentioned a third retest of the Kumo (cloud) lower boundary, the Senkou Span B (SSB). But by dint of relying on a major graphic support or threshold, the probability of breaking it increases over time, according to the theoretical and practical side of technical analysis.

It is clear that what had to happen has happened, with a weekly candle that is currently below the SSB, and therefore below the Kumo. Not to mention that other unfavorable technical signals have just been added: the formation of a doji which testifies to the nervousness of investors, the breakout of prices below the Tenkan, and especially the one below the $41,000 support. And if we still had to drive the point home, the Chikou Span, the main key point of the Ichimoku, got bogged down inside the cloud at the same time as it broke the $41,000.

In the event that Bitcoin prices were to confirm their move below the cloud, sellers or bears would be fine reviving the specter of shoulder-head-shoulder (ETE). In which case we would be approaching the $37,000-38,000 support to begin with.

Bitcoin – Towards a slide towards $35,000?

If ETE were to rise from the ashes, Bitcoin prices would not only risk falling towards the $37,000-38,000 support, but the lows of the year would be in sight. So we are talking about the support of $35,000 (or $34,000-35,000 on the charts) which was successfully tested on January 24 and last February.

Bitcoin price analysis in daily units - April 23, 2022

Unless the situation reverses during this important weekend for the future of France, the break of the $41,000 support would mark a weakening of the various curves of the Ichimoku in daily units. On the one hand, BTC prices are again failing below the Tenkan and SSB. On the other hand, the Chikou Span is no longer very far from passing below the cloud, despite the proximity of the horizontal SSB which can act as a support.

These unfavorable technical signals would rekindle fears of further consolidation since the crypto king last failed below the $46,000 resistance.

In summary, and despite the major uncertainties hanging over the financial markets, we must point out that Bitcoin manages to stabilize surprisingly effectively between the support of $35,000 and the resistance of $46,000. But for all that, the trend since its last ATH in November 2021 remains undecided. And it will be as long as there is no exit from this price zone whatever the direction.

However, this could change against the bulls. Because indeed, the last failure of BTC prices below the resistance of $46,000 caused the drawing of a recent descending line (in red in daily units) passing through its last ATH. In the event that the threat of the $35,000 support becomes clearer in the near future, it would lead us towards a downtrend, with the risk of a return to last year’s lows, around 30,000. $.

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