Bitcoin price analysis is deeply entrenched in bearish territory as selling has accelerated over the past 24 hours. Traders looking to recoup losses by taking small profits are hit hard by sellers who turn every rally into an opportunity to sell. Currently, the Bitcoin/USD pair is trading below $19,000 with a strong bearish outlook.
A repeat of the June 19 low is on the cards as the pair is unable to return to the $21,000 level. Bitcoin price analysis shows that a failure to retake the $21,000 level would indicate significant weakness on the upside. The failure to reach the 200-day moving average reinforces a very bearish outlook for the most popular cryptocurrency.
Bitcoin price movement in the last 24 hours: A slight rally turned into a selling opportunity
Bitcoin price analysis shows that the lack of movement near the $19,700 area means that the bears had the perfect opportunity to trigger another selling frenzy. The BTC/USD pair dipped towards the $18,936 area with candlestick charts showing further weakness in the next few hours. Hopes for any supportive rally to the $21,000 area have faded.
Technical indicators on daily charts show weakness based on Bitcoin price analysis. The RSI is well below the 30 level which means the pair is entering the oversold zone but the indicator is still lower which means more pain is in store. Also, large red candles on daily charts indicate a more bearish outlook. The absence of a doji candle means that the bull is nowhere in the picture.
Bitcoin/USD 4-hour chart: sideways movement with downward spiral
The bearish price channel on the hourly charts confirms the bearish view. Bitcoin price analysis shows that the pair is well below the 9-day moving average. Bollinger Bands do not narrow as the pair moves lower with each passing hour. The RSI has reached a low of 23 on the hourly charts, indicating deep red territory.
The MACD indicator does not show any reversals on hourly charts because the pair does not tend to change tables. Bulls need to gather massive volume to stabilize the current downtrend. Bolling bands are wide but trade with little probability of widening. Even if they do, it is likely to help the pair move towards lower targets of $18,000 and then towards $17,300.
Conclusion of Bitcoin price analysis: There is no point in fighting the trend
Betting against the current downtrend is like “catching a falling knife.” Traders who wish to continue trading at this stage should be very careful not to take large enough bullish positions. Also, the first resistance is at $19,637 where the bears will do another round of selling. Conversely, there is broad support in the $17,620 area where the pair is likely to hold for a temporary bottom.
If the $17,600 support is broken, there is a possibility that the pair will fall to the $15,000 level. A fall to the $15,000 level could destroy psychological support and could trigger mass liquidation among HODLers and institutional investors.
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