BTC Technical Analysis: Reversal From $60 Ready To Cross 100-day SMA
Table of contents
Key Technical Points:
Past Performance of BTC
As mentioned in our previous analysis, Bitcoin (BTC) loses the weekly gains as it retests the broken resistance at $21,875 after cracking under the 50-day SMA. After forming a streak of small-bodied candles over the 50-day SMA, the prices have dropped by 3.4% today, increasing the deflation rate to 6% in the last five days. However, the declining trend in the trading volume supports the possibility of a bullish reversal after a successful retest.
Source - Tradingview
BTC Technical Analysis
As the Bitcoin (BTC) prices fail to sustain above the 50-day SMA, the market sentiment takes a bearish turn. The possibility of prices coming back within range increases which may result in a drop under the $20,000 mark.
The momentum indicators reflect the increasing fear of Bitcoin investors as the underlying sentiments worsen.
The RSI slope falls sharply over the last five days resulting in a dip to the 14-day SMA and the halfway line. Moreover, as the bullish histograms decline, the MACD and signal lines are ready for a bearish crossover.
Hence, the technical indicators support the bearish price action analysis and warn of a drop under $20,000.
In a nutshell, the BTC technical analysis displays growing bearish intentions in the market, teasing a bearish week ahead.
Upcoming Trend
If the Bitcoin (BTC) price fails to sustain above the $21,875 level, a selling spree will retest the crucial bottom support at the $18,850 level. However, if buyers retain dominance at the $21,875 level, a jump to the $23,500 mark is possible.
Resistance Levels: $23,500 and $25,000
Support Levels: $21,875 and $20,000