Price Analysis

Bitcoin Hovering at the Support, Bear Finding the Scope to Drag the Price Back Below $20,000

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jul 8, 2022

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Article Highlights
  • Bitcoin price after a brief upswing has yet again dropped to the crucial support levels close to $21,400, displaying the possibility of revival of a descending trend

  • In a worst case scenario, if the asset breaks down from the present support levels, then it may land up again within the same consolidation zone

Bitcoin price has surged significantly beyond the important resistance during the early trading hours. While the traders were hopeful of the continued uptrend, the bears again jumped in, dragging the price back towards the lower support at $21,400. 

Will the BTC price break below these levels to validate the fakeout? What can be expected from the asset during the upcoming weekend?

Bitcoin (BTC) Price Analysis

  • Bitcoin price is maintaining a significant descending trend forming multiple bearish flags since April
  • The poll of the flag has been rising by nearly 10% each time collectively dragging the BTC price by nearly 54% at the press time
  • Currently, the asset after testing and clearing one of the important resistance at $21,400 has again plunged back to these levels, indicating a fakeout
  • However, the descending trend is still not validated as the consolidation is completely not within a parallel consolidation but has formed a double bottom pattern
  • Therefore, some possibilities of a breakout are seen while the price if plunged may drop by another 40% to visit the levels below $12,000

Bitcoin (BTC) Technical Analysis

Technical Indicators

IndicatorsValue (STF / HTF)Action (STF / HTF)
Relative Strength Index(RSI)50.26 / 46.19Neutral / Neutral
MACD148.1 / -1304Buy / Sell
Average Directional Index(ADX)33.69 / 29.96Sell / Buy
Ultimate Oscillator44.26 / 59.92Sell / Buy
Bull-Bear Power-338.69 / 2549.45Sell / Buy

Pivot Levels

Pivot LevelsShort-TermLong-Term
Moving Average (MA)-50$20,948.9$25,007.7
Moving Average (MA)-50$19,856.4$36,872.4
Resistance $22,891$22,500
Support$21,105$19,203

Bitcoin (BTC) price in the short-term is somewhat bullish but in the higher time frame, the asset is primed to drop below the local support. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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