Bitcoin has given up nearly 20% of its market value over the past week. King coin has been under downward pressure for six consecutive weeks. The currency has retested levels touched in August last year.
The price attempted to recover briefly as BTC attempted to push the $32,000 price level over the past 48 hours. Since Bitcoin broke through the $37,000 level, it has been a free fall of the asset. Bitcoin’s all-time high was $68,000 which it earned in November 2021.
The $37,000 price has been a support level for several months. The ongoing prolonged liquidation spree has brought Bitcoin back to the $30K price mark.
An upward trend appears unlikely given the market dominance by sellers at the time of writing. A continuation of the downward slide will cause Bitcoin to drop below $30K.
Bitcoin Price Analysis: 1 Hour Chart
Bitcoin is seen trading at $30,100 at the time of writing. The $30K price level acted as a strong support level for the coin, however, prices could break below the same level with continued selling pressure.
The support level above also acts as a strong demand area for the coin and if buyers find their way again, BTC could push to touch the $37,000 mark again. The panic selling could prompt BTC to trade near the $22,000 price level.
The fear indicator of the market remains high amid the large sell-off observed across the industry.
Bitcoin is showing bearish momentum (white) on the 1-hour time frame, and this reading confirms the consistent bearish movement. Bitcoin trading volume is seen in green, which could highlight that the price of the asset may try to make a comeback, but that is unlikely, as BTC is trading near a key support area.
Bitcoin was trading below the 20-SMA line, this indicates that sellers are still active in the market. The price momentum was driven by the sellers in the market. At the time of writing, BTC is on the border of oversold territory. Payment from buyers will help BTC to trade above the 20-SMA line.
Interestingly enough, the RSI had something else to say. Bitcoin price caused an outpouring of selling pressure, however, the chart showed a bullish divergence (white). A bullish divergence on the RSI could mean that Bitcoin could climb north, however, the chances are very slim.
Related reading | TA: Bitcoin Struggling Below $32,000, Why The Downtrend Could Resume
Bitcoin has been forming a bearish flag for the past couple of months. This was an indication that BTC was about to embark on a bearish price movement. Despite the formation of a falling wedge (yellow) pattern, which is considered bullish, the breakout from the same level caused the bitcoin price to drop even more. Rebound opportunities cannot be ruled out but the downside pressure looks very intense at the moment.
Moving Average Convergence Divergence (MACD) indicates price momentum and continues to paint downward pressure. In confirmation of this, the Awesome Oscillator has also depicted miniature green signal bars below the zero line, highlighting the negative price action on the charts.
Related reading | TA: Bitcoin Dives to $30K, Why a Short-Term Recovery Looks Possible
Featured image from UnSplash, Charts from TradingView.com