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Bitcoin Crashes 13% Daily, Is $20K Next? (BTC Price Analysis)

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Bitcoin fell well below the $30k support zone after almost a month of hard consolidation. Price formed a bearish flag with a valid breakout 2 days ago. Now there is a new impulsive step down.

Technical analysis

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By: Edris

Daily chart

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Bitcoin has been falling rapidly over the past few days and is currently testing the $23k to $24k demand zone. At this level, you should carefully monitor the price action on the lower time frames to determine if a bullish bounce can be expected.

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RSI also once again entered the oversold area, and a short-term pullback from this level is likely. This is also supported by the fact that BTC’s monthly RSI has never been lower than it is now. However, even in this case, the $30K level would be very strong resistance and would be accompanied by a 50-day moving average, a combination that could push the price down and towards the $17-20K area.

Source: Trading View

4 hour chart

On the 4-hour time frame, you can see that while the price was swinging in a bearish flag, the $32,000 resistance level held the price several times, and the bearish momentum that broke the flag down was initiated after the price again failed to break this resistance level.

During the last test of the $32K resistance level, the RSI was near 50, indicating that there would not be enough momentum for a bullish breakout. The price is currently trading at $24k demand and the RSI has moved into an oversold condition (below 30). This observation indicates a possible bullish correction or consolidation in this area in the short term before a possible continuation of the decline.

Source: Trading View

On-chain analysis

By Shayan

This graph consists of the average number of coins per transaction sent to the exchange (SMA-30) and the price of bitcoin. High values ​​of the metric indicate that investors are sending more coins in transactions. This indicates higher selling pressure, which could lead to price drops in the future.

Historically, during the capitulation phase of the market and late bear markets, this indicator rises sharply and registers a local maximum. This interprets significant selling pressure among the participants and the capitulation event. The indicator recently rose, after which the price of bitcoin fell sharply.

Source: CryptoQuant

The bears are in complete control of the market and the general mood is extremely negative. The next bull run can only be expected if the current capitulation ends and then bullish sentiment returns to the market.

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Disclaimer: The information found on Cryptooshalais the property of the cited authors. It does not represent CryptoPotato’s opinion on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency charts from TradingView.

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