Bitcoin Price May Revisit Its $18800 Accumulation Zone; Buy Again?

The Bitcoin daily technical chart accentuates an ongoing sideways rally. The $24500 resistance has acted as a growth limiter, registering the price action to reach higher levels. On the flip side, the $18800 provides bottom support for the range-bound rally. The Bitcoin price currently shows a reversal sign at the nearest support of $19500, and thus, the coin traders can witness a minor pullback before the prices continue their downfall.

Key points:

• The $19500 support bolstered a 5% relief rally before the resumption of the prevailing downfall.
• The coin holder lost 20-and-50-day EMA support with the recent price drop
• The intraday trading volume in Bitcoin is $30.1 Billion, indicating a 22% loss

Source-Tradingview

The last bounce back from the $18800 support surged the Bitcoin price $20.2% higher to hit the $22600 barrier. However, the recent news of high CPI data caused a sharp sell-off in the crypto market on September 13th and tumbled the coin price by 9.5%.

The bearish engulfing candle breached the $20600, 20-and-50-day EMA altogether. Thus, the accelerated bearish momentum plummeted another 5% to reach minor support of $19500.

Also read: Here’s When Bitcoin (BTC) Price May Reclaim The 200-WMA Again

A low-volume Doji candle at this support indicates market participants’ uncertainty. This $19500 mark may likely bolster a minor bullish pullback to retest the $20600 mark as potential resistance.

If the selling pressure persists, the bitcoin price will continue its downfall to the $18800 accumulation zone. 

Technical indicator

Bollinger band indicator: with the $20600 breakdown, the coin holders lost this indicator’s midline, which indicates that sellers have trend control.

Relative strength index: the daily RSI slope nosedived below the mean line, and 20-SMA indicates a negative sentiment building up. However, concerning the price retest to $18800, bottom support and the daily and weekly RSI slope shows a significant divergence. 

This divergence reflects a strong possibility of Bitcoin rebounding from $18800 support.

Bitcoin Price Intraday Levels

• Spot rate: $19663
• Trend: Bearish
• Volatility: Low
• Resistance level- $22550 and $25000
• Support level- $20800 and $18830