After the rejection of the bulls at $24,000 price point a few days back, the Bitcoin price suffered a dramatic decline. The coin has fallen 7.6% over the last week. Bitcoin’s price has barely changed in 24 hours. The coin traded within the same price range.
Although the bulls have tried to enter again, selling continues to grow. However, the coin has maintained a price level above $21,000. Bitcoin’s technical outlook is mixed. This could mean that there may be signs of an inverse trend in the coming trading sessions.
In order to see a successful price turn, buyers must be back in the market. BTC has to rise past the $22,000 immediate price threshold or it could be subject to a swift move towards $20,000 Demand for the coin has been low at higher levels and as long as that’s the case, BTC will continue to witness resistance.
Review of Bitcoin Prices: A Four-Hour Chart
BTC was currently trading at $21,600 as of the writing. The cryptocurrency has been trending upwards but it had moved sideways over the previous trading sessions. The $22,000 resistance mark could prove to be difficult, but once it is broken, Bitcoin prices might turn bullish.
The coin received $21,000 in local support. BTC’s price will fall below $20,000, and then drop further to $19,000. To regain Bitcoin’s momentum, buying strength must return to the chart. BTC’s trading volume had increased, indicating an increase in selling pressure.
Technical Analysis
BTC’s constant mundane price action has pushed buyers out of the market. Although buying strength had been trying to rebound, Bitcoin’s price has not risen above $22,000 for too long. This has led to buyers feeling less secure.
Relative Strength Index briefly rose above the halfway mark, but then dropped back below it. At press time, this signaled more sellers. Bitcoin’s price rose above the 20 SMA and showed that the momentum was being driven by buyers.
As there was a buying signal, the coin began to show signs of reversal. A buying signal indicates that bulls are resurfacing. A Moving Average Convergence divergence is a sign of price momentum or change in price action.
MACD experienced a bullish crossover. It formed green histograms, which indicate a buy signal. Bitcoin prices could rise above $22,000 if buyers take advantage of it. The $18,000 price floor might be established if there are more sellers. Parabolic SAR shows the price direction. Dotted lines below the candlestick point to bullishness.