BTC Price Analysis: Falling Volumes Hints Extended Consolidation Near $22,000
The Bitcoin price remained offered amid a lukewarm trading session on Monday. The price opened higher but fell quickly to test the intraday low of $21,702. However, as influenced by the previous week’s price action, it moved back to reclaim the $22,000 mark.
- BTC price started the fresh trading weak on a lower note.
- Bulls were not able to withstand higher opening in the early trading hours.
- However, an impressive bounce back from $21,700 points at the range bound movement.
Why 22,000 is crucial?
BTC remained in a short-term consolidation that extends from $18,000 to $21,000 since June 16. The price breached the resistance zone on July 18, and testify one month near $22,780 with impressive volumes. In an earlier attempt, the asset was rejected near $22,490. Thus, the support-turned-resistance level is a make or break point for BTC investors. For today, the BTC price analysis remains neutral as prices are expected to move in a familiar trading range.
As of publication time, BTC/USD reads at $21,875, down 3.16% for the day. According to CoinMarketCap, the 24-hour trading volume jumped 10% at $28,700,215,128.
On the daily chart, the BTC after moves higher after giving a breakout out of the short-term consolidation. Next, it tagged the 50-day Exponential Moving Average (EMA) and return to a corrective pullback mode. Thus, it acted as a critical resistance level for the bulls to surpass.
The retest of $22,000 level makes it a psychological to hold. It would be marked as a make-or-break level for BTC buyers.
The RSI(14) is trading near 50 with a negative bias. The oscillator is about to break the RSI MA line, which is a sign of bearishness. If RSI goes below 49, then we can expect more downside in the asset.
Another important indicator, the trading volumes are below average, showing a lack of buying interest as the price approaches the support level.
A break below the session low would see $21,600 as the first downside target.
On the hourly time frame, the price is moving in a downward channel with an immediate support near 50.0% Fibo. retracement level at $21,800.
On the flip side, a buying interest could push toward the previous session high of $23,000.
Conclusion:
BTC is trading at the no-zone stage. A decisive break below $22,000 on a daily basis would open the gates for the more fall.
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