Here’s Why Bitcoin Price Seeks 11% Gains This Week

Bitcoin started descending trend from the $22,200 zone against the U.S. dollar. Bitcoin price analysis indicates a consolidation with an expected upside momentum. The price has been consolidated below $20,000 for the past few sessions. But holding the lower level, means sellers are losing steam.

• Bitcoin price started the new trading week on a lower note.
• The price is trading below $20,000 and a 21-day exponential moving average.
• BTC sustains above the critical $19,500-$19,200 support zone.

Bitcoin price looks for a fresh trading signal

Bitcoin price retrace in a complete cycle from the swing highs of $25,200, a depreciation of 24% to the swing lows of $19,552.06 on August 28.

Further, BTC started the new series on a mute note and traded in a very narrow trade range of $20,460 and $19,650. The price has formed reliable support around above $19,000 and continues to glide in a sideways manner.

Bitcoin price analysis on the daily chart suggests a possible recovery toward $22,000.

Let’s understand

The price opened higher and tag the intraday highs of $20,052. However, the bulls failed to sustain the gains and retraced lower. As of writing, BTC/USD is exchanging hands at $19,715.85, down 1.31% for the day. In the past 24 hours trading volume rose 15% to $27,703,420, 394.  This, shows bears have an upper hand here as a fall in price with rising in volume implies a bearish momentum.

However, by looking at the previous price action, we found significant support plying around the $19,500 level. Further, the formation of the Doji candlestick indicates indecision among investors.

For the past nine days, the bulls successfully hold the mentioned support level. The market structure remains oversold, we expect a renewed buying pressure that would pierce the psychological $20,000 on a closing basis. If that happens more new buyers will be attracted owing to the discount buying opportunities.

Next, market participants would take out the highs of August 30 at $20,592.02. On moving higher, the upside hurdle is placed at the critical 21-day exponential moving average of $20,800. This also coincides with a 0.23% Fibonacci retracement.

A shift in the sentiment on the course of action has the potential to target $22,000.

Also read: Michael Saylor: Bitcoin, USD To Coexist In Near Future Transactions

On the flip side, a break below the viable support of $19,500 could ensure the downside to continue. The sellers would enjoy $19,000 first followed by the low of $17,689, the levels last visible in June.

Technical indicator:

Moving Average Convergence Divergence (MACD): The momentum oscillator trades below the midline with a neutral bias. The rising histogram suggests impending bullish momentum.