BTC Technical Analysis: Bitcoin Bulls Fail to Hold $21K

After trading above $21,000 for two consecutive days on November 4 and 5 last week, Bitcoin (BTC) declined below the psychologically important level of $20,000 on Tuesday, losing most of the value it gained last week. BTC’s 24-hour high is $20,908.74 and its low is $19,564.

Currently trading at about $19,775.30, BTC declined over 5.63% in the last 24 hours losing around $1344.74 in the last 24 hours and $1,119.32 today only, touching its daily low of $19373.50, as long-term holders (LTHs) sold their positions to make profits. With a market cap of $379.34 billion as of now, the world's top cryptocurrency has plummeted 56.15% so far this year.

Key Points

Source Tradingview

BTC Technical Analysis

According to experts, the current sharp drop in BTC is triggered by a spat between crypto exchange Binance and FTX, with Binance announcing the liquidation of its entire FTX token holdings after rumors about the insolvency of FTX spread in the market. Following the Thursday revelation by CoinDesk, BTC slipped below $20,000 triggering selling pressure in the market. The price candles signal that traders and investors are selling at a loss due to fear of a bullish reversal.

After the price of BTC declines sharply in the last two days, fear of a bullish reversal prompts the investors to sell their positions, with 50-day SMA showing a downward trendline.

Technical Indicators

RSI slope indicates falls from the 60% level with a 14-day SMA below the halfway line, signaling a potential bearish divergence. Moving above halfway, the gap between MACD and signal lines increases as the bearish histograms begin to decline after a short recovery.

As the downtrend trend has already begun with a steep decline in the price below the support level, the technical indicators signal that it might push the BTC price further into a bearish zone.

Resistance Levels: 19862 and 19856.12

Support Levels: 19735.40 and 19677.92