BTC Technical Analysis: Will Bitcoin Prices Fall This Week?
Table of contents
Key Technical Points:
Past Performance of BTC
The Bitcoin (BTC) prices take a bullish turnaround from the psychological mark of $20,000, leading to a Morning Star pattern after the Feds increased interest rates. The bullish reversal inflated the market price by 15% within three days to reach the 24,500 level. However, the ascending resistance trend knocks the prices below, leading to multiple higher price rejection candles. Hence the current market condition shows an increased level of fear among investors that may lead to a retest of the $21,875 breakout.
Source - Tradingview
BTC Technical Analysis
The bearish influence of the resistance trendline affects the Bitcoin (BTC) market price negatively as it has led to a 5% retracement in the last three days. Hence traders can find opportunities to short sell at the current market price as selling pressure increases.
The bullish turnaround takes over the 50-day SMA, but the retracement possibility might soon retest it.
The RSI slope attempts to take support at the 14-day SMA above the halfway line to keep the trend in motion.
The MACD indicator displays decreasing spread between the fast and slow lines as the bullish histograms lose their intensity. Hence the likelihood of a bearish crossover between the fast and slow lines increases.
In a nutshell, the BTC technical analysis showcases a rise in selling pressure from the resistance trend line. This increases the chances of a potential retest of the $21,875 horizontal level.
Upcoming Trend
If the BTC prices continue to fall with an increase in selling pressure, we can see a downtrend throughout the week. Traders can expect the downtrend to take support at the $21,875 level, the 50-day SMA at the $21,300 level, or at the psychological mark of $20,000
Conversely, if the prices take a bullish turnaround, the buyers may face opposition at $25000.
Resistance Levels: $24,500 and $25,000
Support Levels: $21,875 and $20,000