BTC Technical Analysis: Will Bitcoin Prices Tumble Below $18K?
Table of contents
Key technical points:
Past Performance of BTC
The BTC price shows a bullish failure to surpass the $21,875 resistance level to give a bullish breakout of the double bottom pattern. Additionally, the retracement results in an 8% drop in the last three days and cracks below the $20,000 psychological mark. Thus, the price action prepares to test the yearly bottom support at $18,850. However, the lower price rejection in the daily candle teases a bullish fightback, which may result in an early offside reversal.
Source- Tradingview
BTC Technical Analysis
The BTC price chart shows a drop in trading volume compared to the last two days increasing the possibility of an upside reversal. Hence traders must wait for price action confirmation before preparing a shorting strategy.
The MACD indicator shows a growing bearish influence on the fast and slow lines as the positive histograms tumble to the zero line. Furthermore, the vortex indicator indicates a bearish trend reversal as the VI lines regain the negative alignment and the spread increases.
However, the RSI indicator shows a bullish divergence in the negative retracement and attempts to take support from the 14-day average line. Hence the RSI indicator maintains a positive outlook for Bitcoin prices in the upcoming future.
In a nutshell, the BTC technical analysis shows a high likelihood of a downfall to the $18,850 support level as a bearish trend gains momentum.
Upcoming Trend
If the selling pressure grows near the $18,850 support level, the BTC prices will break under the neckline and potentially retest the $18,000 mark. Conversely, a bullish reversal will further continue the sideways trend between the consolidation range.
Resistance Levels: $20000 and $21875
Support Levels: $18850 and $18000
