Bitcoin is stable near its critical support level at $30,000. Bitcoin traded near the immediate support level for more than a week.
In the week that passed, BTC lost an average of 6% and fell by 3.3% within the 24 hour period. This week has seen continued market weakness make it extremely challenging for Bitcoin, as well for altcoins.
BTC was trading at $25,000 and had fallen to that level since December 2020.
Bitcoin recovered $5000 but it is possible that the market will continue to slide. Technical analysis of Bitcoin pointed to continued market pressure.
The One-Day Chart: Bitcoin Price Analysis
Bitcoin price at $29100 was at the time this article was written, after being rejected by the Coinbase at $31,000. Bitcoin’s immediate resistance was $25,000.
The coin will drop below $19,000 if it falls below the threshold. The bulls can send temporary relief to help the coin move higher than $30,000, and it will trade near the $31,000 resistance.
Bitcoin volume traded was shown in the red. This indicates that the day’s chart is bearish.
Technical Analysis
Although Bitcoin may have shown signs of stability, further indicators show that it could plummet soon again. The King coin traded below the 20-SMA, which indicated that the sellers had the majority of the market’s price momentum.
The buyers’ support can help push the coin past the $30,000.00 resistance. Support from the buyers is unlikely considering that the coin formed a bearish flag, or yellow.
The bearish flag could indicate further pushing by the bears. This could result in the coin falling below the $20,000 level.
The coin hadn’t touched the $20,000 price level in over a year now. Relative Strength Index fell below half-line, which indicates that sellers remain in control as indicated by SMA lines.
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Bitcoin’s bearish flag reflected how the coin continued to fall on the chart after the pattern was formed. After a long battle against sellers, the bulls are tired. Awesome Oscillator also showed signs of bearishness.
It indicates the market’s price momentum. The indicator is red and the histograms beneath the half-line are a sell signal.
It is possible to see $20,000 on the charts if sellers keep their word. Chaikin Money Flow depicts capital inflows. Because capital outflows were dominant at press time, the indicator fell below half-line.
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