The past weekend was bearish for the entire crypto space as the Bitcoin bears strengthened their grip and slashed the price by more than 5%. The bearish volume has accumulated; hence, the price is expected to maintain a descending trend throughout the week ahead.
While the crypto verse hoped the price to surge beyond $25,000 and close the monthly trade around $30,000, the unexpected price slash may hinder the progress of the rally, clinching the levels below $20,000 in the coming days.
A significant ‘Sell Signal’ was lit off as soon as the BTC price marked the levels beyond $24,000 during the previous week. The price remained swinging between $23,000 and $24,000 for quite a long time, indicating the price zone to be extremely risky with a high probability of a swing trade.
Therefore, the next swing may compel the price to retrace into the next relevant support area between $22,000 and $20,000 within the rectangle as shown below.
If the rally holds strong within these support zones, a significant rebound may raise the price back above $24,000 which may further push beyond $25,000. However, this scenario appears to be unlikely as the recent upswing was a result of a short squeeze following the move in the Nasdaq and weakness in the USD.
Therefore, until and unless, the Bitcoin price does not leap beyond $25,000, the bullish trend may not be validated. The price is believed to display false swings in either of the directions till then that may induce distrust among the market participants. Once the price drops below $22,500, a bearish confirmation may set off, capitulating the market for the next couple of weeks ahead.
However, the price after experiencing an extended compression tends to break out of consolidation which may lay down a notable upswing to reclaim the lost positions beyond $24,000 soon.
Source: https://coinpedia.org/price-analysis/bitcoin-bears-regain-control-can-they-drive-the-btc-price-below-20000/