After copping up its worst-ever week in 2022 earlier in the month, the weekend curse was finally lifted as Bitcoin shifted upwards to $31K. However, sellers were back on the hunt on Monday morning. The industry leader was pairing gains on the 4-hour timeframe and with a bearish technical pattern also in play, these support levels could hold Bitcoin’s value this week.
Bitcoin recovery done and dusted?
![](https://watcher.guru/news/wp-content/uploads/2022/05/Screenshot-2022-05-16-134912-1024x377.png)
![](https://watcher.guru/news/wp-content/uploads/2022/05/Screenshot-2022-05-16-134912-1024x377.png)
An attractive buy area followed by investor accumulation appeared to have been responsible for the weekend. Proceeding the weekend rise, large holders NetFlow spiked to its highest level in over a month after Bitcoin hit $29K – a historically reliable buy area for investors.
Whether or not the current accumulation pattern would help protect Bitcoin from further sell-offs this week was uncertain but rest assured, retail interest for Bitcoin remains weak. Weekly on-chain exchange net flows were up by $1.5 Billion, suggesting that on a macro level, traders had dumped more coins on exchanges rather than HODL them amidst a volatile market.
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![](https://watcher.guru/news/wp-content/uploads/2022/05/Screenshot-2022-05-16-133549.png)
Furthermore, most on-chain signals, including net network growth and large transactions, painted a skeptical outlook despite BTC’s weekend resurgence.
Bitcoin 4-hour Chart
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Well, Bitcoin’s recovery was likely to fade and the same was visible on the chart. After tagging $31.5K resistance, a couple of red candles formed on the 4-hour timeframe as BTC slipped below its 20-SMA (red) on Monday morning. A bearish technical pattern was also active – opening the price to more downside action.
Thus, over the next few days, $28.6K-$29K was the most significant support to hold on to. A breakdown would bring forward $27K and $25.4K supports, both of which were yet to prove themselves as reliable defenses. The $24K-$22K price region was the next significant buy area, according to the Visible Range profile.
For bulls to establish command, a move of about $31.5K would provide some winds to their sails but given the bearish structure, gains would likely be limited to the daily 20-SMA (not shown) at $35K.