Bitcoin Price Analysis: Potential Descending Move Toward $21,000 On This Bearish Formation

Bitcoin’s (BTC) price is trading lower amid overall bearish sentiment. The price is still consolidating near the $22,000 level. This trading level also coincides with the short-term support-turned-resistance level. Thus, a crucial level to hold for the investors.

• BTC price extends the losses for the second straight day.
• The formation of the ‘Spinning’ top might reverse the recent upside move in BTC.
• The 24-hour trading volume fell by 14.85% to $42,324,564,870 on Thursday.

BTC price trades in red

On the daily chart, the BTC price is making lower highs and lower lows which indicates the presence of bearishness. The 50-day moving average also supports the theory, as the price continues to move down since March 2022. In the past whenever the price tested the mentioned moving average and formed a bearish or Doji candlestick pattern, it started to fall sharply.

After giving a bullish breakout from the short-term consolidation that extends from $18,000 to $20,000, it faces a good resistance of moving average and started to fall inside the range again. The recent price action gives an impression of a false breakout.  BTC from its lows of $18,890 gave good impulse moves without taking any pause. Hence, BTC might be looking for some retracement now toward $21,000 to $20,000

In addition that the formation of ‘Spinning top’ followed by the red candlestick hints at the continuation of the downside momentum.

On the hourly chart, a trend reversal is expected in BTC. The asset is previously making higher highs and higher lows, indicating bullish momentum.

Near the higher levels, the price formed a bearish “Head & Shoulder” pattern and broke the structure on lower levels. 

The reversal is yet to be confirmed, as BTC is retesting H&S Neckline 

On the other hand, an acceptance above $23,000 would challenge the bearish outlook.

As of writing, BTC/USD is exchanging hands at $22,630, down 2.48% for the day.

Conclusion: – 

BTC is sideways to slightly bearish on the higher time frame, but on the shorter time frame, BTC is about to change its trend on the bearish side.