According to the weekly Bitcoin chart.
The coin price bounced back from this support last week, and a morning star candle pattern indicated a potential double bottom pattern.
Before dropping to $18800, the price of Bitcoin may hit the $20500 mark once again. The RSI indicator on the weekly chart clearly exhibits a bullish divergence. Bitcoin has a $24.9 billion intraday trading volume, representing a 14% loss.
A new rebound rally can be started by the aforementioned reversal pattern, which can restore the bullish momentum. A bull run to the $31700 might result following a bullish breach from the $25000 neckline. Anyhow, the bullish pattern and the recovery idea will both stay valid if the price of bitcoin maintains above this level.
In a recent series of tweets, renowned On-chain analyst Willy Woo explained why the price of bitcoin has not yet bottomed out. The "Cost Basis Density Map" is one of the indicators we are probably going to emphasize.
The blue line in this graph reflects the percentage of losses the coin experienced. As a result, according to analyst Willy Lee, "the market has not felt the same anguish as earlier bottoms in terms of extreme pain."
The tweet highlighted the fact that only 52% of coins are underwater right now. The previous bottoms, though, were 61%, 64%, and 57%.
Therefore, if the selling pressure continues and the $18800 support level is broken, the $12250 level would be the next significant support area.
EMAs: With the bearish crossover of the 50 and 100 EMAs and the prospective crossover of the 20 and 200 EMAS, the weekly EMAs support the continuation of the recent decline.
Relative strength index: Strength in the bullish momentum is indicated by a bullish divergence in the daily RSI. Therefore, a price reversal or prolonged consolidation above the $19000–$18000 support is suggested by the rising indicator slope.
