For the last 48 hour, Bitcoin has been bleeding. It has taken a while for the wider crypto market to recover from this extreme choppiness. BTC traded last week between $33,000 and $28,000. However, today the king currency fell in unhealth.
BTC’s long-standing $28,000 support level was eroded by selling pressure. BTC currently trades below the $25,000 mark. This is the lowest level of trading since December 2020.
Although this level was a catalyst for a huge rally in December 2020, BTC continues to fall below $25,000 at the time. Both traditional and crypto markets continue to struggle, while financial markets such as the stock market have been suffering.
Along with many other frauds in the crypto sector, the Terra crash has caused further downfall. BTC is losing ground to the bears every day, so it’s only a matter of timing before it reaches the next important price support level.
The One-Day Chart: Bitcoin Price Analysis
BTC fell significantly in the past 24 hours, trading at $24,000 The coin plunged 14% in just one day. It hasn’t revisited this level ever since the end of 2020. It is currently at $22,000. BTC may also drop to $20,000 if the sellers get their way.
Bitcoin reached $28,000 as major resistance. Volume bars showed a dramatic spike in BTC trades during the session. A sign of bearishness, the volume bar also had a red colour.
Technical Analysis
BTC continued its bleeding in the past 48 hours, putting sellers under pressure. BTC trading laterally before, buyers were trying to take control of the market. After the consolidation, the coin fell below its crucial support level. This prompted buyers to abandon the market.
In line with this, Bitcoin’s price was below its 20-SMA level, which is a sign of bearishness. At the time this was written, it meant that the currency’s price momentum had been driven by sellers.
The Relative Strength Index also fell below 20. This indicates that the market is heavily oversold. Markets usually recover after experiencing extreme selling pressure.
BTC prices could move towards the $26,000 mark if there’s a correction.
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Bollinger Bands are what determine market price volatility. The coin was not within the bands. Price volatility was rising as the bands widen. The Bollinger Bands may also show a decline, which could indicate a price turn.
For that to occur, buyers must bring back buying power to the market. An Awesome Oscillator that displays price momentum, and indicates changes in that price momentum, indicated a move towards bearish prices momentum.
Also, the indicator flashed red histograms which meant that it was a sell signal. The indicator’s growing size suggested that the coin had more selling power. But, due to the dramatic increase in number of sellers, an eventual price drop can also be anticipated.
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