Bitcoin (BTC) continues its journey, overcoming significant resistance levels. Because of this, the pair has been trading sideways while holding onto some of its week-long gains. In general, the worst of the BTC sell-off has passed. Although there is still widespread fear about bears, it has already had a significant effect; and BTC is still down roughly 50% for the year. The BTC/USD price has retraced from the $23k level, roughly following the moving average (MA 50). A bearish indication is given if the MA 50 is not crossed sharply. Bitcoin’s recovery to the neighborhood support level at $21k would be the nearest development. The rise in asks (sell orders) liquidity for Bitcoin above its present levels and the halt in bullish momentum are both followed by a surge in the supply of Bitcoin on cryptocurrency exchange platforms. There are roughly $70 million in sell orders for Bitcoin between $23,000 and $24,000 in short time frames.
Key Levels
Resistance Levels: $30,000, $28,000, $25,000
Support Levels: $22,000, $20,000, $17,000
BTC/USD Daily ChartAfter a challenging start to the week, Bitcoin is again trading sideways as it looks for support at $22,000. BTC prices are still in a state of stabilization and it’s yet to approach the psychological zone at $25,000. While this may be optimistic for bulls hoping for a jump above $25,000, it has settled beneath the moving average (MA 50) and the upper end of its recent range.
Support might come from the surrounding $22,000 near-term downside barrier if the sellers maintain control. If this foundation fails, the price might fall to the $20,000 and yearly lows before aiming for the $16,000 region. However, if the price exceeds $25,000, the bulls might then aim for the $35,000 MA200 zone before the end of the year.
BTC/USD 4-Hour ChartAs buying interest rises, the short-term oscillators show declining negative momentum. When compared to the price, the 4-hour moving average (MA 50) is above while the relative strength index (RSI), is moving away from its midline 50. The $20,000 support bar is still below the price, indicating that the bulls may soon regain the upper hand.
The $22,000-$20,000 zone may try to obstruct the path towards the recent low of $17,567 to stop the outlook from deteriorating overall. This would be below the moving average (MA 200). The $20,000 support region will come under attention if selling pressures continue to exist. In the short term, the recent BTC/USD price recovery might gain further traction.
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