BTC Weekly Price Analysis: A Bearish Trap or Correction?

Last Friday, BTC/USDT stopped the bounce started from the beginning of the week and reached the weekly bottom near the $45,500 mark. As we can see, despite the fact that the price is jumping up and down, BTC price is still in a gradual decline. Now, Bitcoin has already dropped below $ 47,000 again.


However, there are three fundamental factors could contribute to the increase of Bitcoin price.


First, against the backdrop of the confrontation with China, the United States will accelerate the legalization of the cryptosphere, and this, in turn, may have a positive effect on cryptocurrency.


Secondly, cryptocurrency may become the main beneficiary of the fall in the stock market in the face of tightening of the Fed's monetary policy. Investors could ditch stocks in favor of Bitcoin as a hedging instrument.


Moreover, the decline in the yield on US Treasury bonds may also have a positive effect on the quotes of BTC.

 

Technical Forecast

As for the forecasts for the coming week, although the market is still bearish, there is a possibility of a short-term bullish correction.


Let's take a look at the weekly price chart. Though the candlestick of last week was still bearish, BTC price is holding above the general uptrend line, as well as the minimum price ($42,300 level) of two weeks ago. Nevertheless, there was no upward rebound, and so far the weekly chart is still more on the side of the bears.

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On the daily price chart, we can see that the price continues to decline within the formed descending channel. However, if we switch o a linear chart, then we see a certain discrepancy between the price chart and the RSI and MACD indicators. The price continues to form new lows, while the indicator lines have already begun to move in the opposite direction. And although the divergence is not yet so pronounced, it can still indicate a rise in prices in this week.  Another signal is that the lines of the MACD indicator have closed in the same way, indicating a possible price increase.


If this happens, then we can expect a correction to the uptrend line, which is now a vertical resistance line, after which the downtrend is likely to resume.

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