April 17, 2024

Bulls Halt Bitcoin Decline as Bears Hold Sustain Price Above $20,000

The price of Bitcoin experienced heavy selling pressure on Tuesday the 13th of September when it was at $22,794, a resistance area for the leading crypto asset. Bitcoin began to spiral down after that, but bulls showed up to save the day within the last two days. The decline has now been brought to a stop and Bitcoin is consolidating above the support level of $20,000.

Recovering from Selling Pressure

It is speculated that when the price manages to rise over its 21-day simple moving average, then it will be properly positioned to begin ascending again. The expectation is that when Bitcoin bottoms, buyers will come up at its low price area to then push the token higher to where it had fallen from and beyond it. With that permutation, buyers are now expected to stage a revisit to the $22,794 area and then break it through to the next resistance area.

BTC/USD price chart. Source TradingView

The Bitcoin market is expected to stage a rally above the $24,000 resistance area once the buyers complete their consolidation of the $22,794 area. The resistance area after $24,000 is at $25,205.

Nevertheless, the activity of sellers also calls for serious attention. If sellers are able to break through the psychological level at $20,000, then Bitcoin might be on its way to dropping to a low level of $18,675. But then again, it is widely expected that buyers would rally to defend the token’s present level of support.

Bitcoin will be trading between $18,675 on the low side and $24,000 on the high side if it happens to lose its present support level.

Technical Indicators

The Relative Strength Index in the 14th period shows Bitcoin to be at level 45. The token is in the lower zone as a result of the latest downtrend. But some indicators suggest that Bitcoin might still continue on the declining path since it is now under the 21-day simple moving average and the 50-day simple moving average.

The token is also under the 50% level of daily analytics. This suggests that the Bitcoin market might be in a bearish regime. The token’s 21-day simple moving average and the 50-day simple moving average are sloping horizontally as they show a movement sideways.

So far, Bitcoin has pulled back from the drop it was recently suffering to now be at the $20,000 psychological area. Whereas the downtrend it suffered on the 20th of August had its candle that tested the 78.6% Fib retracement. That retracement indicated that Bitcoin was going to fall but it would pull itself back at 1,272 Fib extension or the $19,732.91 area. 

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