Bitcoin Price Could Possibly Rally Provided These Levels Are Crossed

The bears defeated the price of Bitcoin after it had been trading around the $20,000 mark for some time. Over the past 24 hours, the coin is down 2.1% and in the past week the bitcoin price has lost nearly 5% of its value.

At the moment, the coin is trading at the price level of $19,000.

The price of the asset has been directly linked to the US Federal Reserve’s rate hike. Similarly, Bitcoin continued to face selling pressure on its chart.

The technical outlook continues to show a decrease in buying power.

The asset’s price is currently showing a consolidation on its chart. If the coin continues to show minimal price action, Bitcoin could fall back to the $18,000 region.

There is a tight area in which the coin is trading and without the help of buyers, a move above the current resistance area seems unlikely.

In such a situation, the asset can move south within the framework of the text trading sessions.

Bitcoin Price Analysis: 1 Day Chart

Bitcoin price
Bitcoin is priced at $19,100 on the 1-day chart | source: BTCUSD on TradingView

BTC is trading for $19,100 at the time of writing. After trading around the $20,000 price level for an extended period of time, the selling pressure has intensified.

The upper resistance is at $2,0200 but Bitcoin could stop at $19,600. Movement above $20,200.

If the coin continues to fall due to selling pressure, it could break below the $18,000 price mark and drop to trade near $15,000.

A move above the $24,000 price level could also help the bitcoin price rally to $30K. The amount of Bitcoin traded significantly decreased in the last session indicating an increase in selling power.

Technical Analysis

Bitcoin price
Bitcoin Shows Decline in Buying Power on the Intraday Chart | source: BTCUSD on TradingView

BTC has noticed a sharp drop in demand on the one-day chart. This means that the demand for the coin above the $19,000 price level was high.

A move above the $19,000 price mark could bring back demand for the coin which could increase the outflow of buying power.

The RSI was below half the line and was very close to the oversold territory. However, there was a slight rise, which does not mean the return of buyers.

Bitcoin price moved below the 20-SMA line and this indicates that sellers were driving the price momentum in the market.

Bitcoin price
Bitcoin flashes a sell signal on the 1-day chart | source: BTCUSD on TradingView

Other technical indicators for the currency also indicated a downward trend on the chart.

The Moving Average Convergence Divergence underwent a bearish crossover and displayed red bars below the half line line which acted as a sell signal for the currency.

Bollinger Bands read price volatility and chance of price volatility. The bars are narrowing and this is an indication of incoming price fluctuations or explosive price action.

Once the price of Bitcoin rises above the 20-SMA, then the coin may briefly move north on its chart.

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