Bitcoin Price Analysis: BTC Renewed One-Week Low Below $21,000; No Hope Of Reversal?

The Bitcoin price broke the $21,000 level briefly on Wednesday, sending jitters to the buyers. In today’s session, the BTC moves in a very tight range with limited upside potential. The analysis indicates a bearish bias unless a strong reversal sign appears on the chart.

• BTC price extends the previous session’s loss on Tuesday.
• However, the downside momentum slows down near the weekly support of $20,770.
• A daily close above $21,800 could be a last hope for the bulls.

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BTC price continues south

On the daily chart, the BTC price reaches a crucial level, a weekly support structure near $20,800 to $21,000. A make or break point for BTC investors.

After the much-awaited breakout, the bulls failed to sustain above the critical 50-day exponential moving average (EMA).

A daily close below the $20,700 level would intensify toward $20,200 followed by $19,000.

BTC after giving an impulse move from the extended consolidation between $18,900 to 22,300, the upside momentum is exhausted or waiting for further confirmation. However, the formation of multiple Doji candlesticks indicates rejection near $24,400.Thus, inducing a distribution phase.

Two-hour time frame suggests consolidation

On the two hourly charts, BTC sought support near  61.8%  Fibonacci retracement connecting from recent swing lows to swing high. It is also 61.8% known as a golden level. The momentum oscillator remains neutral.

As of writing, BTC/USD is exchanging hands at $21,087.20, down 1.01% in the past 24-hour. On the contrary, the trading volume rose to 31% at $38,012,601,557. A bearish sign.

Conclusion

The price faces a strong upside barricade with a technical setup in favor of bears. The higher probability of breaking the lower level is favored.