BTC Price Prediction: Can Bitcoin Price Retest to 200 Moving Average Restore Bullish Recovery?

BTC Price Prediction: The last three weeks’ correction phase has plunged the Bitcoin price from a peak of $25200 to $19800, registering a 22% loss. The coin price is currently wavering above the 20-day moving average(MA), with long-lower price rejection candles indicating the exhausted bearish momentum. Can this MA support resume the bullish recovery or it’s just a temporary halt before the next bear cycle?

Key Points:

• Bitcoin Fear & Greed Index at 33% indicates the market’s sentiment shows fear
• A potential bullish reversal from the 200-day MA may encourage a 10% upswing
• The intraday trading volume in Bitcoin is $43.2 Billion, indicating a 92% gain.

Source-Tradingview

Amid the recent downfall in the crypto market, the Bitcoin price gave a massive breakdown from the combined support of 50% Fibonacci retracement level and $20500. This breakdown was supposed to accelerate selling pressure and push the BTC price to lower levels.

However, the 200-day MA slope which reflects the overall trend in an asset prevented the Bitcoin price from excessive downfall. Over the last three days, the daily chart has shown lower price rejection candles at 200-day EMA support indicating the buyers are accumulating at this support.

Also Read: What Is Regenerative Finance (Refi) And Who Is It For?

If the buying pressure persists, the Bitcoin price may witness a relief rally to the following resistance of $21500 and $22500. Considering the overall market sentiment is negative, this potential bullish reversal will be considered temporary until the price surpasses the $22500 mark. 

Technical indicator

RSI: The daily RSI slope at the neckline of the oversold region indicates the traders have overextended the selling activity and thus a minor bullish pullback is plausible. 

EMAs: A bearish crossover between the 20-and-50-day EMA may encourage sellers to hold trend control.

Bitcoin Price Intraday Levels

• Spot rate: $20364
• Trend: Bearish
• Volatility: High
• Resistance levels- $20500 and $21500
• Support levels- $19000 and $18225