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Bitcoin price, on Wednesday, shows that bears are attempting to put BTC into a close last seen in early January 2021. Ethereum price threatens to touch a new lowest 2022 and 10-month close. XRP price action tested the $0.50 as resistance but could not break it.
Bitcoin price action during the New York trading session has been decidedly weak. As risk-on markets across the globe show renewed selling, BTC has followed suit. As a result, nearly all of the gains made from last Friday’s (May 13) close have been eliminated. As a result, bears could push BTC to the lowest close since January 1, 2021.
The only immediate support structure for Bitcoin on the daily chart is the Tenkan-Sen – which has a marked slope down. Bulls have made several attempts to maintain a daily close above the Tenkan-Sen over the past five days, but results have been mixed.
If bulls want to mitigate any further near-term bearish price action, Bitcoin price will need to close at or above the high volume node in the 2022 Volume Profile at $31,700. If that scenario comes true, then the path to $40,000 becomes much easier because the volume profile is between $31,700 and $40,000.
Downside risks for Bitcoin price may be substantial. Below the 2021 and 2022 lows is a near-total absence of traded price action. However, the next high-volume node does not appear until the 2020 Volume Profile near $22.500. And below that, $19,000. Even further is the 2020 Volume Point of Control at $10,000.
