Bitcoin Technical Analysis: Bitcoin Drops Over 3.53% as Bear Continuous

 Bitcoin Technical Analysis: Bitcoin Drops Over 3.53% as Bear Continuous

BTC Technical Analysis

The technical analysis of Bitcoin indicates a continuation of the declining trend as the price struggles to cross above the 200-day SMA due to selling pressure.

The week has been a roller coaster for most of the crypto markets. Bitcoin (BTC) also saw a dramatic drop to its two-year low of $15,555 which it hit last time in November 2020 in the backdrop of the COVID-19 crisis, registering a drop of 21.59% in the last 7 days. 

The current crypto crash is coupled with a number of events including liquidity crises in US-based crypto exchange FTX and Binance-FTX failed acquisition deal. 

Although the market bounced back on Thursday, with BTC trading above $17,000, it could not maintain the bullish reversal on Friday and Saturday and dropped down below the crucial support of $16,900.

Key Points

  • BTC price actions display a continuation of a bearish trend
  • BTC price action displays a power struggle at the 50 and 100-day EMA
  • The intraday trading volume in BTC is $49.45 billion 

  • Tradingview Chart

    Source Tradingview

    Bitcoin Technical Analysis

    As Bitcoin does not show signs of a bullish reversal on the daily chart, the situation remains bearish. If BTC does not make its way back it may make support at $13,880. And if BTC bounces above the $18,000 resistance level, it would be put to test at $21,000. The 3.86% drop in market cap which stands at $321.92 billion reflects the buying pressure in the BTC market as prices remain relatively volatile. In the last 24 hours, BTC dropped more than 3.53% to make support near $15,722. If the prices drop below $16,000 again there are high chances of the breakout of present support. Trading at $16,718.39 at press time BTC touched the daily low of $16,351.42. 

    Technical Indicators

    Sharply diving below the 50% boundary from the overbought zone, RSI makes a bearish divergence moving below the 14-day SMA indicating a bearish breakout for buyers. On a bearish histogram, MACD and signal line makes a bearish crossover, maintaining a downtrend despite recent symptoms of recovery. 

    Therefore, the Bitcoin technical analysis shows BTC has failed to overpower the current bearish cycle, however, there is a possibility of a bullish reversal if BTC crosses the $18,000 resistance level. 

    Follow us on TwitterFacebook and YouTube

    Post a Comment

    Previous Post Next Post