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The Bitcoin (BTC) prices retest the broken range resistance at $21,875 after failing to sustain above the crucial 50-day SMA.
Key Technical Points:
- The BTC prices dropped by 2.06% in the last 24 hours.
- The market value of Bitcoin breaks under the 50-day SMA.
- The 24-hour trading volume of Bitcoin is $27.02 billion, indicating a hike of 10%.
Past Performance of BTC
As mentioned in our previous analysis, Bitcoin (BTC) loses the weekly gains as it retests the broken resistance at $21,875 after cracking under the 50-day SMA. After forming a streak of small-bodied candles over the 50-day SMA, the prices have dropped by 3.4% today, increasing the deflation rate to 6% in the last five days. However, the declining trend in the trading volume supports the possibility of a bullish reversal after a successful retest. Source – Tradingview
BTC Technical Analysis
As the Bitcoin (BTC) prices fail to sustain above the 50-day SMA, the market sentiment takes a bearish turn. The possibility of prices coming back within range increases which may result in a drop under the $20,000 mark. The momentum indicators reflect the increasing fear of Bitcoin investors as the underlying sentiments worsen. The RSI slope falls sharply over the last five days resulting in a dip to the 14-day SMA and the halfway line. Moreover, as the bullish histograms decline, the MACD and signal lines are ready for a bearish crossover. Hence, the technical indicators support the bearish price action analysis and warn of a drop under $20,000. In a nutshell, the BTC technical analysis displays growing bearish intentions in the market, teasing a bearish week ahead.
If the Bitcoin (BTC) price fails to sustain above the $21,875 level, a selling spree will retest the crucial bottom support at the $18,850 level. However, if buyers retain dominance at the $21,875 level, a jump to the $23,500 mark is possible. Resistance Levels: $23,500 and $25,000 Support Levels: $21,875 and $20,000