Bitcoin price analysis shows that the pair is clearly exposed to strong headwinds as it barely clings to the $20,000 price level. This negative bias is due to reduced liquidity over the weekend, where traders have no large positions. The sharp fall in stock markets on Friday will probably continue next week and could have a more negative impact on this currency pair.
Fed Chairman Jerome Powell’s hawkish comments will escalate the issue in the cryptocurrency market. A consolidation near $20,000 is not certain as the price could even drop to the $18,000 level. With the pair hovering near the $20,000 level, the market is bearish. Bulls are barely able to maintain volume to stick to the $20k level.
Bitcoin price movement in the last 24 hours: Slow and steady decline below $20,000
Confirmation of the flag and pole pattern on the charts is a huge bearish signal. Bears are building big short positions for the last 24-48 hours to get below the $20,000 mark. A gradual move near the $20,000 level suggests that the pair is losing strength as it enters the weekend on thin volumes, according to Bitcoin Price Analysis. The pair is consistently moving close to the 50-day EMA but is repeatedly rejected.
Selling has intensified over the past two days as prices have been weak near the $22,000 support zone. According to Bitcoin Price Analysis, Bitcoin quickly bottomed out, falling below the 20-day EMA near $22,000. The extended move has since intensified to push the price below the $20,500 level.
BTC/USD 4-Hour Chart: Limited Range or More Pain?
The $20,000 support has been relatively strong in the past, as the pair has previously rallied near this level. However, a rising flag and pole pattern is a concern that could push the price closer to $18,500 in the next few days. The $19,000 support will be the first level to be seen if the bears extend their selling in line with the equity markets.
Bitcoin price analysis shows that bears follow a “sell on the rise” pattern to plan their trades. Therefore, any jump in the BTC chart is sold. The RSI is near 30 and shows no sign of going back anytime soon. The MACD line is also nowhere near the crossover.
Bitcoin Price Analysis Conclusion: Will September Be Bearish?
As another month dawns, Bitcoin price analysis becomes more bearish. The $21,000 level has been confidently broken by the bears on the daily charts. It seems that the September effect has taken hold of Bitcoin once again. Historically, Bitcoin has been known to crash in September, and this year looks no different.
Falling stock markets coupled with macroeconomic concerns will only drag Bitcoin down. The target is $18,000 and a new low.
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