Bitcoin Plummets To $23000 ; How Long Till It Touches $20000?

Bitcoin has been bleeding for 48 hours. The broader crypto industry is struggling to weather the massive volatility. Over the past week, BTC traded between $33,000 and $28,000, respectively, but today, the coin has fallen unhealthily.

Selling pressure escalated and BTC lost its long-term support mark of $28,000 due to this. Currently, the coin has broken below the $25,000 price mark, and BTC has not traded below that level since December 2020.

This level led to a sharp rally after December 2020, but BTC has continued to drop below the $25,000 mark at the time of writing. Financial markets including traditional markets have also suffered recently while cryptocurrencies continued to experience massive setbacks one after another.

Terra’s crash along with other scams across the broader crypto industry has continued to cause a crash across the industry. With BTC constantly capitulating to the bears, it is only a matter of time until it touches the next critical price support level.

Bitcoin Price Analysis: 1 Day Chart

Bitcoin is priced at $23,000 on the intraday chart | source: BTCUSD on TradingView

Bitcoin has dropped significantly in the last 24 hours and is trading at $24,000. In just one day, the coin fell by 14%. He has not reconsidered this level since the end of 2020. The immediate critical support level for the coin is $22,000. If sellers are identified, BTC could drop to $20,000 as well.

Bitcoin’s main resistance is $28,000. The amount of BTC that was traded in the last session has seen a massive surge as reflected in the volume bars. The volume bar was also red which is a sign of a downtrend.

Technical Analysis

Bitcoin Oversold on 1-Day Chart | source: BTCUSD on TradingView

Selling pressure was high as BTC continued to bleed over the past 48 hours. Previously when BTC was trading sideways, buying force was trying to get back into the market. Immediately after the consolidation, the currency broke below the critical support level and buyers started to exit the market.

On the other hand, bitcoin price is seen below the 20-SMA line, which indicates a downtrend. This means that the sellers were driving the currency’s price momentum at the time of writing.

Similarly, the RSI was below the 20 level which indicates oversold conditions in the market. Usually, after a period of intense selling pressure, the market notices a correction.

In the event of a correction, BTC price may attempt to trade above the $25,000 mark and move near the $26,000 level.

Related reading | Bitcoin Weekly RSI Sets Record For Most Oversold In History, So What Comes Next?

Bitcoin blinks sell signal on the intraday chart | source: BTCUSD on TradingView

Bollinger Bands determine the price fluctuations in the market and the coin has fallen out of the bands. The streaks opened indicating that price volatility is on the rise. A drop from within the Bollinger Bands may also indicate a price reversal.

Buying power must return to the market for this to happen. A wonderful oscillator that displays price momentum and also signals a change in it, reflects a change towards bearish price momentum.

The indicator is also blinking red histograms and this means a sell signal for the coin. The growing bar also hinted at an increase in selling power, however, a change in price can be expected due to the sharp increase in the number of sellers.

Suggest reading | Crypto Markets Lose $100 Billion as Bitcoin Drops Below $26,000 – More Pain to Come?

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