Bitcoin price analysis shows strong bearish sentiment as the price pattern continues to bear down. A low of $20,769 indicates that the hourly charts are oversold and need a pullback to balance the technical indicators. Sellers need to reload their ammo and therefore require a slight price increase, which could bring the price closer to $21,500.
However, buyers should not get too excited as the price could not break above the $23,000 resistance zone. The downside risks are huge. The current price of BTC/USD is $21,290 with a strong bearish bias. The consolidation near $21,000 is relatively small as the pair struggles to maintain key support levels.
Bitcoin price movement in the last 24 hours: $21,000 acts as a cushion for the pair.
Bitcoin price analysis shows that the pair fluctuates between $20,200 and $20,800 with few sparks. A silent movement is a sign of consolidation of long positions within a defined range. The sideways price action will only help the bears create more short positions near the upper trend line of the Bollinger Bands.
A bearish “flag and pole” pattern helps the bears push further support levels as the price deepens. The $21,000 support level looks minimal for now but seller pressure will increase as the week progresses. Bitcoin price analysis shows that the bearish flag and pole pattern is rising and the price will soon challenge the $20,000 support zone.
BTC/USD 4-hour chart: Above-average volumes to determine direction
Volume on the hourly BTC/USD time frame is decreasing but still remains above average. The decreasing channel also gains volume and momentum along with it. Big money does not take large positions on both sides of the trade. Also, according to Bitcoin price analysis, institutional investors have also been absent for the past few weeks.
The bearish trend is expected to remain well below the $19,800 price level. The lowest price pattern shows the inherent weakness of the price. Fibonacci retracement of $32,000 indicates the $18,000 price level as a swing low. Since the psychological level of $25,000 has already been broken, the price can certainly move towards the $18,000 level in the long term. The RSI is barely above the 30 level on the hourly charts.
Conclusion of Bitcoin price analysis: There is only one way – down
The Bitcoin/USD pair has fallen below $20,790, which also happens to be the 50-day moving average. The price cannot hold confidently above the $22,000 level, and the bears are using it to create more short positions.
Bitcoin price analysis shows that the hourly trends may show some retracement, but the long-term trend is definitely bearish. The possibility of a fall is high and a downside could take the price below $21,000.
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