BTC Price Analysis- Losing 20 EMA support, Bitcoin could retest $18860

Within a month, the BTC price has bounced back from the $18860 support, indicating the trades are accumulating at this level. However, on the flip side, the coin price struggles to surpass the $22688 mark, suggesting the sellers have not thrown in the towel yet. Hence the bitcoin price is consolidating in a range awaiting a genuine breakout.

Key points: 

• The 20-day EMA fallout may give additional confirmation for a bearish reversal
• A rising RSI slope indicates growth in underlying bullishness
• The intraday trading volume in Bitcoin is $31.9 Billion, indicating a 41.7% loss

Source-Tradingview

Following a sharp drop in June’s second and third week, the BTC/USDT pair started resonating within a definite range, indicating uncertainty among the market participants. Thus, their failed attempts to surpass the above $22668 or bottom $18860 reflect aggressive buying and selling on either side.

On July 3rd, the BTC price showcased its second reversal from the $18860 mark, validating it as legitimate support. As a result, the coin price started to recover and surged 20.3% in just six days.

However, the daily candle retested the overhead displayed a long-wick rejection indicating the supply pressure persists. Thus, the BTC price dropped 5% and now challenges the flipped support of the 20-day EMA

Over the past three months, the BTC price faced constant resistance from the 20-day EMA. During this downfall, the coin prices reversal or a failed attempt to sustain above this EMA triggered a significant sell-off.

Therefore, the candle closing below the 20 EMA could give additional confirmation for the downfall to bottom support of $18860.

Technical Indicator 

Bollinger band indicator- the upper band slope aligned with the $22668 resistance enhances the defense power of these levels. Moreover, the indicator range has shrunk significantly, accentuating the range-bound rally.

Relative Strength Index: a bullish divergence in the RSI slope despite consolidation indicates the BTC price may eventually break the overhead resistance. The slope may soon enter the bullish territory bring an extra edge to buyers.

• Resistance level- $22668 and $26000
• Support level- $18860 and $17810