A Bitcoin up-date: Is it reversing?

It was some time ago when I did an entry on Bitcoin titled What is happening to Bitcoin? in August 2022. A lot happened in the crypto arena magnified by the FTX scandal. 

At one point, I wanted to come out wiht a piece of article on crypto as I see it as a con job, the article turned out to spread so wide especially evidence of scandals are so wide spread including FTX, One Coin and the sketchy origin of Bitcoin itself. 

So much so that I gave up working on the article.

Stock for instance, gives you a portion to the company; indices derive from the stock price of a basket of companies listed in the stock market; forex is an exchange of currencies; commodities from the trade of materials.

But what backs the crypto? Nothing. In fact, the FTX scandal demonstrates that you can create a crypto for trade out of nothing. It is upto the creator to decide what price he wants to give.

It is also interesting that the crypto world was once viewed as the next BIG thing to replace existing currencies controlled by the world governments. Even the trading platform I use once with ability to trade crypto currencies, the group has since been removed.  

Fig 1. BTC-USD weekly chart

Since my last up-date, Bitcoin went on to a new low. At the same time, its descent does not come with the momentum to push it forward and gradient of descent is gradual.

During more recent weeks, it started climbing upward, only to congest again during the last 2 weeks.

The downside readings remain unchanged, with a double top formation having support between 6,664 to -7,075. Using zig zag pattern on the downtrend, the projection provides support at between 12,481 to 26,082, the later level which coincide with the present level of the Bollinger band envelop with the higher-level moving averages (55-, 89, and 144-week moving averages) nearby. this seems to be the possible resistance to stop Bitcoin at the neckline at 28,893, like what I have mentioned in my earlier entry (one of the possibilities).

Furthermore, with the steepness of the descent in 2022, it is also possible that Bitcoin to congest in a narrow band for a longer period of time, before it's further decline.