NewsletterBTC Price Analysis- Losing Bullish Momentum Hints Reversal from $22000
A bull cycle within the range-bound rally has brought the Bitcoin (BTC) price back above the $20000 mark. Though this recovery rally is expected to reach the $22000-$22600 resistance, the reducing volume indicates the coin price is less likely to breach this resistance.
Key points:
- The BTC chart shows the traders are accumulating at $18880
- The daily-RSI slope jumps above the neutral zone.
- The intraday trading volume in Bitcoin is $26.39 Billion, indicating a 34.11% gain.
Source-Tradingview
The BTC/USDT technical chart represents a short-term consolidation phase bounded within the $22000 and $18850 barriers. The coin price wobbling between these range’s levels for the past month indicates a lack of commitment on the other side of the parties.
On July 13th, the BTC price showcased its third retest to $18850 support and reverted immediately with a bullish engulfing candle. Thus, the resulting rally displayed five consecutive green candles and surged the market price by 14%.
However as the recovery rally is approaching the overhead resistance of $22600, the daily candle size is reducing and has started showing long wick rejections. This indicates weakness in bullish momentum and a higher possibility for price reversal.
If this theory turns out to be true, the BTC price may revert from the $22000-$22600 supply zone. Thus, the resulting reversal would continue the ongoing consolidation for a few more sessions and could plunge the price back to $18880.
In an unlikely scenario, if coin buyers manage a bullish breakout from the resistance zone, the traders may expect a genuine recovery rally.
Technical Indicator
RSI indicator: since last month, while the BTC price has followed a lateral path, the daily-RSI slope is constantly rising with near higher highs. Moreover, the indicator slope has just entered bullish territory, indicating the coin price may eventually breach the $22600 resistance.
Bollinger band indicator- the indicator’s band, has surprisingly well-aligned with the range barriers giving them more weightage. Thus, a breakout on either of these should cause a significant impact on BTC’s upcoming rally.
- Resistance level- $22600 and $26000
- Support level- $20000 and $18600
- Breaking: President Donald Trump Signs Bill to End Government Shutdown, Bitcoin Bounces
- U.S. House Approves Bill to End Record 42-Day Government Shutdown, Trump to Sign Tonight
- Breaking: Canary Funds Files for First-Ever MOG ETF
- Hawkish Fed President Bostic To Retire In February Amid Push For More Rate Cuts
- Hyperliquid Halts Deposits and Withdrawals Amid POPCAT Liquidation Saga
- Death Cross Triggers Sell Signals for Cardano Price— Will ADA Retest $0.50?
- Sui Price Set for a $5 After Launch of USDsui Native Stablecoin
- Ethereum Price Holds Above $3,400: Can Bulls Defend This Key Support?
- After a 108,000% Burn Spike, Will Shiba Inu Price Hit $0.000016 Next?
- Bitcoin Price Eyes Fresh Rally as U.S Government Reopening Sparks Risk-On Mood
- Pi Network Price Eyes Rally to $0.5 as Top Whale Holdings Nears 375M Tokens
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
