Bitcoin Price Crash Amid Massive Selloff, This Might Be the Next Stop

Bitcoin Price Crash Amid Massive Selloff, This Might Be the Next Stop

The price of Bitcoin is down nearly 8% over the past day due to a higher CPI report.

Most cryptocurrencies are down on their charts after the CPI showed a 0.1% increase in August, bringing the now unadjusted value to 8.3%.

The annual increase was expected to be 8.1%. Over the past 24 hours, Bitcoin has recorded a 4% loss.

Given that the market is witnessing an extended sell-off, a further decline in the value of BTC is expected. The technical outlook for the coin was bearish as buyers have left the market at the time of writing.

Bitcoin price has been struggling at $18,900 in the past month, but it managed to break above that price level last week.

Bitcoin has crossed the $22,000 level. The latest hit from the CPI report pushed the currency lower.

Indices have chosen to side with the bears given how the sellers are controlling the market at press time. Today, the global cryptocurrency market capitalization is $1.04 trillion, with a negative change of 2.5% in the last 24 hours.

Bitcoin Price Analysis: 1 Day Chart

Bitcoin price
Bitcoin is priced at $2,020,020 on the 1-day chart | source: BTCUSD on TradingView

BTC is trading at $20,200 at the time of writing. The drop from $22,000 was surprising due to the unexpected number from the CPI report.

Bitcoin’s immediate resistance was at the $21,000 mark. If BTC manages to drop this level, it could return to trading above the $22,000 price mark.

Local support for BTC has reached $19,200. However, with the heavy selling, the coin could drop to trade near the $18,900 support line.

The amount of bitcoin that was traded in the past session has grown slightly, indicating an influx of buying power.

Technical Analysis

Bitcoin price
Bitcoin showed a slight increase in the number of buyers on the intraday chart | source: BTCUSD on TradingView

BTC has recorded a sharp drop in buying power over the past 24 hours. This drop in buyers pushed the price closer to the nearest support line.

The RSI is seen below the half line, which indicates strong selling power, and therefore a downtrend.

Over the past few trading sessions, the RSI has noticed a slight rise, indicating a slight increase in buying power.

Bitcoin price just dropped through the 20-SMA line, which was also a sign that sellers were driving the price momentum in the market.

Bitcoin price
Bitcoin recorded a buy signal on the 1-day chart | source: BTCUSD on TradingView

BTC offered a buy signal even though the market registered a small buy signal after the buying strength showed up.

The wonderful oscillator depicts the overall market strength and price direction. AO rose above the half line, indicating that buyers can act on this price action.

Even if buyers act on the buy signal, the price of the asset will hardly notice an upward movement. The trend movement indicator indicates the price direction and momentum.

DMI was negative as the -DI (orange) line was above the +DI (blue) line. The average trend indicator (red) was above the 20 mark, which means that the current price trend has gained strength.

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