Bitcoin (BTC) Technical Outlook Long-Term Downtrend Remains In Play

• Macro fundamentals continue to control 's price action.
• The odds of a breakout are shortening.

The last few weeks have been relatively quiet in the cryptocurrency market with prices drifting towards, and testing, zones of support. The ongoing narrative of higher rates for longer to combat inflation has kept a lid on any upside move with any short-term rally seen as an opportunity to hit the sell button. While the price of Bitcoin has drifted lower of late, support continues to hold firm, leaving traders looking at a narrowing range.

Bitcoin Daily Price Chart – October 5, 2022

Chart via TradingView

The weekly BTC/ chart shows the recent stalemate and also highlights that the longer-term downtrend is closing in on the multi-month support level. This suggests that a breakout is on the cards and with the ATR reading at a multi-month low, suggesting that the market is relatively complacent, a break could be sharp. A convincing break of support around $17.66k could see $12.5k to $14k come into play, levels last seen over two years ago. A break above the downtrend would see the mid-August weekly high at $25.k the next upside target.

Bitcoin Weekly Price Chart – October 5, 2022

Chart via TradingView

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