Published 3 hours ago
Today, the Bitcoin price is trading at the $19723 mark and had earlier retested the weekly support of $19500. The long tail-rejection attached to the daily candle back by decreasing volume increases the likelihood of bullish reversal. Can the potential bull run reclaim the $20600 mark?
Key points from Bitcoin price analysis:
- The BTC buyers obtained significant support at $19550
- The Bitcoin price action remained trapped in a narrow range
- The intraday trading volume in Bitcoin is $24.3 Billion, indicating a 13.5% loss
Following the August second-half sell-off, the Bitcoin price plunged to $19500 support and initiated a consolidation phase. This downfall has offset around 75% of gains recorded during the June to early august recovery and plummeted the prices by 22.5%.
Earlier this week, the Bitcoin price attempted to recover higher but failed to surpass the nearest resistance of $20750. As a result, the coin price entered a narrow consolidation between the $20750 and $19500.
Furthermore, the failed attempt mentioned above slumped the BTC price back to the $19500 mark. However, the decreasing volume during this bearish reversal reflects that the seller’s hand is weakening as we approach the lower support.
Such volume activity with a long lower price rejection indicates a higher possibility for a bullish reversal. Thus, if the buyers pierce the $20750 resistance, the Bitcoin price may witness a longer relief rally before continuing the bear trend.
A bullish reversal may surge prices by 10.5 or $14.5% to hit the $21900 or $22600 resistance, respectively. However, a bullish breakout above $22600 would weaken the bearish momentum and bolster buyers for a $25000 breakout.
On the flip side, if the Bitcoin price took an immediate reversal from the $20750 resistance, the consolidation range would extend longer and possibly breach the lower support.
A breakdown below $19500 will prolong the correction phase to $18865 or $18000.
Bollinger band: the coin price trading quite below the middle line reflects an aggressive selling in the market. Moreover, a possible reversal may face dynamic resistance from this midline.
RSI indicator: A bullish divergence in daily-RSI slope bolsters price reversal from the $19500
MACD indicator: the fast and slow slope drawn close to each other displays the buyers’ attempt to regain trend control. A potential bullish crossover between these will encourage the $20750 breakout.
- Resistance level- $207501 and $22000
- Support level- $19550 and $18865
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.