The Bitcoin price has lost its 2022 bottom support of $18400-$18200 amid the turmoil in the crypto market. This crucial support was lost by the Bitcoin price, which indicated that the current downtrend should continue to lower levels. The Stock to Flow (S2F), model by Plan B, and RSI divergence indicate that the Bitcoin price will continue to decline.
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Brian Bollinger Bitcoin price lost $18400-$18200 support in 2022 amid the turmoil in the crypto market. This crucial support was lost by the Bitcoin price, which should continue its downward trend to revisit lower levels. However, the Stock to Flow (S2F) model by Plan B and RSI divergence suggest that the Bitcoin price will recover in 2023.advertisementKey points:The technical indicators suggest an oversold Bitcoin price
An early sign of recovery is a bullish breakout from the weekly 20 EMA slope.
Bitcoin’s intraday trading volume is $18.8 billion, which indicates a drop of 4.32%
Source-TradingviewThe Bitcoin price tried to sustain above the $18400-$18200 support for nearly five months. The market experienced a significant sell-off after the FTX crypto exchange collapse. This led to a dramatic fall in Bitcoin price from the aforementioned support for nearly five months. If the price is stable at its current level, then the post-retest fall should see Bitcoin drop 23.4% to $12500. Trending StoriesA bullish divergence in weekly-RSI slopes near the oversold area indicates that selling activity has been excessive. Trending StoriesThis divergence suggests that the selling activity has overextended and the coin could soon recover. The model’s core concept states that the market value of Bitcoin will rise as the supply of assets decreases. Although it seems impossible to achieve such rapid growth, the Bitcoin price has always followed the Stock/Flow slope. Moreover, in 2011 and early 2014, the model showed similar deviations on the upside, which eventually led to a sharp price decline back to the Stock/Flow slope.advertisementThus, it can be said that in the year 2023, the Bitcoin price will rise higher and decrease the gap with the Stock/Flow slope.Share this article on:About author
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