Hello CoinPanelers! For this week’s newsletter let’s quickly analyze Bitcoin’s price action from last week.

After falling to $18,600 at the start of this week, Bitcoin has made a strong recovery to $22,000. It looks like the bulls are in control after a long time, will we see a break of the resistance at $22,500?

Bitcoin tested the resistance at $22,500 after it rallied by over 5% on Thursday. There seems to be a great potential for a strong rally that could be seen after Bitcoin broke out of a resisting trendline on Thursday, this break could be the start of a short-term rally that could occur quickly.

Earlier this week the bears were in complete control after Bitcoin approached the $18,600 mark. The bulls were quick to return to Bitcoin after it surged by over 20% in under 4 days, however, the resistance at $22,500 has rejected the price from rallying further. This is why traders should wait for a clear break of the resistance at $22,500 before taking any long positions. Once a clear breakout is seen we can expect a rapid move to $28,000 without any hurdles as the buying volumes can also be seen supporting the price. The coming week could very well be in favor of the bulls if they can flip the resistance. 

Another sign of the bulls returning is that many coins are breaking out of their structures such as Ethereum breaking out from a symmetrical triangle. Traders must be cautious as Bitcoin could face yet another rejection from the resistance at $22,500, thus fresh buys must be held off until we see a strong breakout.

Markets continue to be tough on crypto exchanges

The dilemmas of crypto exchanges disabling withdrawals continue as a widely known crypto exchange in Asia called Vauld suspended deposit and withdrawal services. Vauld stated the volatile market as a reason for their “financial challenges”. Vauld faced a massive surge in crypto withdrawals after the fiascos of the Terra Luna- Stablecoin, Celius Network pausing withdrawals, and 3AC defaulting on their debt. 

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