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Bitcoin Plummets To $23000 ; How Long Till It Touches $20000?

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Bitcoin has been bleeding for the past 48 hours. The broader crypto industry is struggling to overcome the huge volatility. Last week, BTC traded between the $33,000 and $28,000 levels respectively, however today the royal coin has fallen unhealthy.

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Selling pressure has increased and because of this, BTC has lost its longtime support mark of $28,000. The coin has currently broken through the $25,000 price mark, BTC has not traded below that mark since December 2020.

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This level caused a massive rally after December 2020, but at the time of writing, BTC continued to fall below the $25,000 mark. Financial markets, including traditional ones, have also been hit lately, while cryptos have continued to fall one by one.

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The collapse of Terra along with other scams in the wider crypto industry continues to cause the downfall of the entire industry. With BTC constantly giving in to the bears, it is only a matter of time before it hits its next major price support level.

Bitcoin Price Analysis: One-Day Chart

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Bitcoin was worth $23,000 on a one-day chart | Source: BTCUSD on TradingView

BTC has fallen significantly over the past 24 hours and has been trading at $24,000. In just one day, the coin fell by 14%. It has not returned to that level since the end of 2020. The nearest critical support level for the coin is $22,000. If the sellers are determined, BTC could also drop to $20,000.

The main resistance for Bitcoin was $28,000. The amount of BTC traded in the last session has increased significantly as reflected in the volume bars. The volume bar was also red, which is a sign of bearish sentiment.

Technical analysis

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Bitcoin was oversold on the one-day chart | Source: BTCUSD on TradingView

Selling pressure has been high as BTC has continued to fall over the past 48 hours. Previously, when BTC was trading sideways, buying power was trying to get back into the market. Immediately after the consolidation, the coin broke below the critical support level, and buyers began to leave the market.

Accordingly, the price of Bitcoin has been below the 20-SMA line, indicating bearish sentiment. This meant that the sellers were in control of the price momentum of the coin at the time of writing.

Similarly, the Relative Strength Index was below the 20 level, indicating that the market was heavily oversold. Usually, after a period of extreme pressure from sellers, a correction is observed in the market.

In the event of a correction, the price of BTC could try to trade above the $25,000 mark and approach the $26,000 level.

| Bitcoin Weekly RSI Sets Record for Most Oversold in History, What’s Next?

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Bitcoin flashes sell signal on 1-day chart | Source: BTCUSD on TradingView

Bollinger bands determine the price volatility in the market, and the coin has gone beyond the bands. The bands opened, indicating an increase in price volatility. A fall inside the Bollinger Bands can also indicate a price reversal.

For this to happen, purchasing power must return to the market. Awesome Oscillator, which displays the price momentum and also indicates its change, reflecting the change in the direction of the bearish price momentum.

The indicator also flashed red histograms, which meant a signal to sell the coin. The rising bar also hinted at an increase in sellability, however, a change in price can be expected given the sharp increase in the number of sellers.

Suggested literature | Cryptocurrency Markets Lose $100B As Bitcoin Drops Below $26K – More Pain Ahead?



Credit : www.newsbtc.com

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