NewsletterHere’s What BTC Technical Analysis Says, If Holders Lose $20000 Support
The BTC price witnessed a sudden turnaround in market sentiment as the prices failed to surpass the prior swing high of $24550. The resulting correction breached multiple support levels, such as $22500 and $22000, and now challenges the $20000 psychological level for the same reason. What if sellers reclaim this level as well?
Key points from BTC analysis:
- The BTC price is on the verge of providing a weekly candle closing below the $20000 support
- A potential bearish crossover between the 20 and 100 DMA would intensify the selling momentum
- The intraday trading volume in Bitcoin is $26.5 Billion, indicating a 25.4% loss
Source-Tradingview
On August 15th, the BTC/USDT recovery rally reverted from the $24450 local top. The following bearish reversal fueled by the US Fed hint for an increasing interest hike in September plunged the BTC price to the $20000 mark.
This downfall tumbled the BTC price by 18.3% and has evaporated around 65-68% of gains the coin holders obtained from the June-August recovery. Furthermore, the BTC sellers attempted to breach the $20000 psychological support on August 27th but failed to provide a candle closing below it.
Thus, the daily chart displays lower price rejection at the $20000 mark, indicating the presence of strong demand pressure. Today, the BTC price shows a Doji candle at the same level, indicating uncertainty among the market participants.
If the buyers push the price higher, a pullback to the $20800 mark will still be considered a minor relief rally before the bear cycle continues again. However, a bullish breakout from the $20800 could tease a recovery opportunity.
On a contrary note, if the coin sellers manage a candle closing below the $20000 mark, the bearish breakdown in the weekly chart will accelerate the bearish momentum. Thus, the BTC price fall will plummet the prices by 5.1% and hit the June-July bottom support of $18900
Technical Indicator
ADX: the rising ADX slope indicates growth in underlying bearish momentum.
RSI: the RSI slope is hovering just above the neckline of the oversold region(30%), indicating the selling activity is overextended. Thus, the momentum indicator supports a bullish pullback before the price hits $20800.
- Resistance level- $20000 and $21921
- Support levels- $18900 and $18000
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