Bitcoin fractals have largely remained unchanged as prices have remained within the same ranges. Despite the fact that the hash rate has been increasing and reaching new highs, the price has not changed. As a result, the next few weeks appear to be crucial in determining the future path of the BTC price and, by extension, the rest of the crypto market.
Meanwhile, BTC price has yet to show a significant bounce, so the weekly and monthly charts remain bearish. Notably, the price faced heavy rejection from the key resistance, which could now severely limit the strength of the rally.
On the other hand, the Bitcoin mining difficulty, also known as the Hash rate, is reaching new highs every day.
The narrowing trend has not affected the miners, as they continue to deposit BTC by not issuing it to exchanges. The main reason could be the price of BTC, which has remained relatively unchanged for almost two months. As a result, large numbers of miners can shut down their machines over time, resulting in a major capitulation phase.
One such major capitulation is expected to be fast approaching, which may drag the BTC price heavily, as low as $11,000.
Just before the start of the previous bull run, the MACD showed a major buy signal, pushing the price towards its ATH. Looking at the previous trend, it appears that the asset has not yet reached the bottom, as selling pressure persists on the monthly time frame. As a result, it looks like the price of BTC has hit lower levels in the coming months.
As a result, a bearish close for the Bitcoin price in 2022 is likely, with the price falling as low as $14,000 to $11,000 by December to Quarter 1 of 2023. However, the possibility of a bottom forming before the MACD cross appears.
In such cases, bitcoin price could drop to around $11,000 and remain stable for some time until it crosses the MACD, which could trigger a massive surge to $28,000 in the next 6 months.
