NewsletterBitcoin Price Analysis: What If BTC Price Loses $20000 support?
The Bitcoin(BTC) price has dropped to a new 2022 low of $20178, accounting for 70% loss since the November All-Time High of $68789. Thus, the coin price tested the shared support of $20000 and 0.786 FIB level, trying to replenish the bullish momentum. An expected pullback due to the oversold signals from indicators could offer relief rally to $24000 or $28000.
Key points:
- The oversold RSI indicates aggressive selling in the market
- The $20000 psychological support may trigger minor pullback in BTC price.
- The intraday trading volume in the Bitcoin is $32.6 Billion, indicating a 27.48% loss
Source- Tradingview
During Mid May to June, the combined support of the $28500 and 0.618 Fibonacci stalled the ongoing bloodbath in the crypto market. However, the resulting consolidation eventually ended on bearish note as the BTC/USDT pair breached this bottom support on June 11th.
This support fallout indicated continuation of prevailing downtrend and deprecated the BTC price by 29.3%. The downfall breached crucial psychological support as $26000, $24000 and now has recently tested the $20000 mark.
Today, the BTC price is up 3.36% but lack of volume rise indicates weakness in the bullish commitment. Thus, If the selling persists the coin price may pierce the $20000 support as well.
Below the $20000 mark, the nearest significant support level the coin holders can expect is 10% lower at $18000 level aligned with 0.786 FIB level.
However, the coin price dropping to a low level such as 0.786 FIB is considered weakness in technical analysis, suggesting the buyers need
Technical indicator-
The daily-RSI slope nose dived into the oversold region indicates the crypto crash has overextended the selling pressure. Moreover, the BTC price hovering above an important psychological level($20000) with RSI at 23%, indicates the traders may witness a bullish relief rally before the price starts to fall again.
A bearish alignment among the crucial DMAs(20, 50, 100, and 200) reflects an overall downtrend. The sudden price drop has increased the gap between the price and DMAs, accentuating aggressive selling.
- Resistance level- $24000, and $28000
- Support level- $20000 and $18000
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