Posted 4 hours ago
Today, Bitcoin price is trading at $19,723 and it had earlier retested the weekly support at $19,500. The rejection of the long tail associated with the daily candlestick through reduced volume increases the probability of a bullish reversal. Can a potential upside path recover the $20,600 mark?
Key points from Bitcoin price analysis:
- BTC Buyers Get Big Support at $19,550
- Bitcoin price action remains confined to a narrow range
- Bitcoin daily trading volume is $24.3 billion, indicating a loss of 13.5%
After the sell-off in the second half of August, Bitcoin price dropped to the $19,500 support level and started a consolidation phase. This downturn offset about 75% of the gains recorded during the June-early August period and caused prices to fall by 22.5%.
Earlier this week, Bitcoin price attempted to recover higher but failed to surpass the nearest resistance at $20,750. As a result, the price of the coin entered a tight consolidation between $20,750 and $19,500.
Moreover, the aforementioned failed attempt caused the bitcoin price to drop to the $19,500 level. However, the diminishing volume during this bearish reversal reflects the weakness of the seller’s hand as we approach the lower support level.
This volumetric activity with prolonged low price rejection indicates a higher potential for a bullish reversal. Thus, if buyers break the $20,750 resistance, bitcoin price may see a longer rally before resuming the downtrend.
An upward reversal could lead to a price rally of $10.5 or 14.5% to reach the $21,900 or $22,600 resistance levels, respectively. However, the bullish break above $22,600 weakened the bearish momentum and bolstered buyers for the breakout of $25,000.
On the flip side, if bitcoin price takes an immediate reversal from the $20,750 resistance, the consolidation range will extend for a longer period and possibly break lower support.
A break below $19,500 will extend the correction period to $188,865 or $18,000.
Bollinger band: The currency price trading below the middle line reflects strong selling in the market. Moreover, a potential reversal may encounter dynamic resistance from this midline.
RSI indicator: Daily RSI slope bullish divergence supports price reversal from $19,500
MACD indicator: The fast and slow slope plotted near each other shows buyers attempting to regain control of the trend. A possible bullish cross between these two will encourage a break of $20,750.
- Resistance Levels – $207,501 and $22,000
- Support Level – $19550 and $18865
Submitted content may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrency. The author or publication assumes no responsibility for your personal financial loss.