Over the last 24 hours, Bitcoin prices have fallen sharply. The reason is still unknown. Overselling pressure led to the coin’s price dropping by 9.9% within the previous day.
Due to recent price drops, most gains Bitcoin made in one week are now lost.
Bitcoin continued its ascending trendline in the weeks that followed. It happens frequently for Bitcoin to experience a price rise after it has moved up a trendline.
As the buying strength fell significantly within a single day, technical outlook was negative for the coin.
Bitcoin could not push its way above the resistance level at $25,500. It could have led to the cryptocurrency losing momentum and breaking below the trendline.
The sellers took over as there wasn’t enough buyers. The bears had reappear on the charts at press time. The bears might bring in further losses for the coin if buyers don’t come to the rescue.
Review of Bitcoin Prices: A Four-Hour Chart
At the time this article was written, BTC traded at $21,200. As it fell below the trendline, BTC lost 9% over the last 24 hour.
Bitcoin’s inability push above the resistance of $25,000.500 may have led to a loss of positive momentum. Bitcoin’s overhead resistance stands at $22,000. However, Bitcoin could rise above the previous resistance level to $23,000.
Bitcoin’s current price will drop to $20,200. However, a rise to $19,000 is possible.
It was the lowest amount of Bitcoin sold in the past session, which means that the sellers were dominant the market.
Technical Analysis
As it declined 9%, the coin suffered a significant loss of buying power. Bitcoin prices were in an oversold area, but at press time they reported an increase.
Despite an uptick Bitcoin’s selling pressure was more than buying pressure.
The Relative Strength Index showed that the coin was in the oversold and undervalued zone. The Bitcoin price fell below the 20-SMA, which indicated that the sellers had been driving price momentum.
Bitcoin’s selling price was signaled by the fall in buyer strength. The Moving Average Convergence Divergence shows the price momentum as well as the reverse in that. MACD was subject to a bearish crossover. It also flashed red histograms, which can be considered a sell signal.
Directional Movement Index measures price momentum and direction. As the +DI was higher than the DMI, the DMI was negative. This means that the Average Directional Index was at the 40-mark, which could indicate that the current price momentum is gaining strength. It may also mean more dips in Bitcoin’s price.