Bitcoin prices are back below $20,000 and continuing to struggle. Over the past 24 hours, there has been little movement in bitcoin.
Bitcoin’s price dropped by 1.7% over the week. Over the past week, Bitcoin price has been hovering around this level.
As the charts are not favoring bulls, Bitcoin’s technical outlook has been negative.
Since a while, a general market weakness has prevailed. In the last week, sellers have been more active.
Bitcoin currently trades at 71% below its all-time peak, which occurred a little more than a year ago.
In order to beat the bulls, buyers will need to recover the immediately-fixed price limit. The bulls may attempt to defend $20,000 if BTC continues trading above the overhead resistance level for a prolonged period.
The Four Hour Chart: Bitcoin Price Analysis
At the time this article was written, BTC traded at $19 733. As Bitcoin trading volume dropped in the past session, sellers had taken control of the market.
Constant resistance has been faced by the bulls at $20,000 level.
Bitcoin could trade close to the $18,000 support mark if it is repeatedly rejected. The $21,600 resistance level is the second stiff barrier for buyers who reclaim $20,000
Bitcoin prices could rally if the buyers overthrow that level. BTC will fall to $19,000 with one push by the bears.
Technical Analysis
Buyers are now less confident due to the fall in BTC’s value. For a few months, the market strength has been weak.
The last month has seen sellers dominate, with Bitcoin often falling to the oversold zone.
Over the week, Relative Strength Index was generally below the half-line.
The Bitcoin price also fell below the 20 SMA, indicating that sellers are driving price momentum.
Other technical indicators showed how sellers drove the price down. It helps you understand market momentum as well as the possibility of price reversal by using Moving Average Convergence Divergence.
MACD was bearish due to a bearish crossover. MACD also showed red histograms over the half line. It also signals a sell signal, explaining why there were few buyers.
Chaikin Money Flow indicates the amount of capital outflows and inflows. CMF was very close to half-line, after it noticed a decrease in its capital flow. CMF’s downtick at press time is indicative of lower capital inflows.
Featured image by UnSplash. Chart from TradingView.com