While the price of the leading cryptocurrency continues to decline, Michael points to a positive increase in BTC's economic health as a potential indication of a reversal.
According to Michael, a green Chicago PMI number on the charts, the first since May of 2022, suggests that BTC is experiencing positive economic health. Anything above 50 is considered positive, while anything below 50 is negative. Currently, Bitcoin is at 44.9%, an increase from last month's 37.2%.
Additionally, Michael notes that the weekly and daily patterns for Bitcoin are similar, with resistance at $17,349 and $17,681 and support at $16,382 and $15,847. However, the 1-hour time frame shows that Bitcoin is trending down and has been rejected at resistance levels of $16,700 and $16,500. In order for Bitcoin to reverse into an entry zone, it must break through the $16,500 resistance level.
Negative Impact of Recession Rumors on the Bitcoin Market
One factor contributing to the ongoing downtrend for Bitcoin is the impact of recession rumors on the market. As Crypto Michael discusses in his video, the drop in CPI in Spain, coupled with the collapse of crypto exchange FTX, has led to a lower high for Bitcoin.
Despite this, Michael highlights the positive increase in BTC's economic health as a potential indication of a reversal. While the current 44.9% reading is still below the positive threshold of 50%, it represents an improvement from last month's 37.2%.
Resistance and Support Levels for Bitcoin
In his analysis of the weekly and daily patterns for Bitcoin, Crypto YouTuber Crypto Michael identifies key resistance and support levels. On the upside, resistance can be found at $17,349 and $17,681, while support towards the downside can be found at $16,382 and $15,847.
In the 1-hour time frame, Bitcoin is trending down and has been rejected at resistance levels of $16,700 and $16,500. In order for the cryptocurrency to reverse into an entry zone, it must break through the $16,500 resistance level.
