Published 6 seconds ago
A bull cycle within the range-bound rally has brought the Bitcoin (BTC) price back above the $20000 mark. Though this recovery rally is expected to reach the $22000-$22600 resistance, the reducing volume indicates the coin price is less likely to breach this resistance.
Key points:
- The BTC chart shows the traders are accumulating at $18880
- The daily-RSI slope jumps above the neutral zone.
- The intraday trading volume in Bitcoin is $26.39 Billion, indicating a 34.11% gain.
Source-Tradingview
The BTC/USDT technical chart represents a short-term consolidation phase bounded within the $22000 and $18850 barriers. The coin price wobbling between these range’s levels for the past month indicates a lack of commitment on the other side of the parties.
On July 13th, the BTC price showcased its third retest to $18850 support and reverted immediately with a bullish engulfing candle. Thus, the resulting rally displayed five consecutive green candles and surged the market price by 14%.
However as the recovery rally is approaching the overhead resistance of $22600, the daily candle size is reducing and has started showing long wick rejections. This indicates weakness in bullish momentum and a higher possibility for price reversal.
If this theory turns out to be true, the BTC price may revert from the $22000-$22600 supply zone. Thus, the resulting reversal would continue the ongoing consolidation for a few more sessions and could plunge the price back to $18880.
In an unlikely scenario, if coin buyers manage a bullish breakout from the resistance zone, the traders may expect a genuine recovery rally.
Technical Indicator
RSI indicator: since last month, while the BTC price has followed a lateral path, the daily-RSI slope is constantly rising with near higher highs. Moreover, the indicator slope has just entered bullish territory, indicating the coin price may eventually breach the $22600 resistance.
Bollinger band indicator- the indicator’s band, has surprisingly well-aligned with the range barriers giving them more weightage. Thus, a breakout on either of these should cause a significant impact on BTC’s upcoming rally.
- Resistance level- $22600 and $26000
- Support level- $20000 and $18600
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.
Source: https://coingape.com/markets/btc-price-analysis-losing-bullish-momentum-hints-reversal-from-22000/