Bitcoin price analysis: Huge resistance at $21k creates bottleneck for BTC/USD

Bitcoin price analysis shows that the fluctuating price action is slowly translating towards higher lows. The price is currently at $21,950 and the pair is moving towards the resistance at $21k with slow and steady candlesticks pointing higher. The confluence zone near $20,000 is becoming an accumulation zone for the bulls on a short-term perspective.

coin 18
Source: Coin360

However, there are no definite signs of a rebound since the low volatility and volume over the weekend did not inspire any confidence among the bulls. The choppy price action is not leading to a large price move in either direction.

After retesting the price at $21,000, there seems to renewed hopes of a rebound as the new week sets in.

Bitcoin price movement in the last 24 hours: BTC retraces higher lows towards $21,000

Bitcoin price analysis shows that there is demand at $19,000 zone. The temporary rebound over the weekend has shown courage to defend the $18k support area. However, the journey towards $20,500 is not confidence inspiring. The continuous correction is ongoing on the daily charts as well since the pair is steadily moving upwards instead of a sharp decline.

btc 1d
Source: TradingView

The descending triangle pattern does not show any breakout yet but the pair is slightly bullish biased at the moment. In case the price does break to the higher side, the bullish cycle will resume inherently on the upper end of the triangle taking the price towards $22,500. The first major resistance on the path stands at $22,240 where the bears will take notice of any major buying activity.

BTC/USD 4-hour chart: Breaking beyond 50-day moving average is crucial

The bulls are looking to target $30,000 zone eventually to reverse the bear run on the daily charts. The 100-day moving average and the 50-day moving average is not making things easier at $24,000 price zone according to Bitcoin price analysis. The hopes of a significant bull run depend on macro factors, volume, volatility and regulatory issues pertaining in various countries.

btc usd 4h 4
Source: TradingView

Bitcoin price analysis shows that the RSI is stuck at 50 region where the possibility of breakdown does increase exponentially in case of low volume. At present, there is equilibrium in the technical indicators including the MACD which does not show any immediate crossover. The indecision won’t last long as both the bulls and the bears are looking for an opportune moment to enter trading.

The sharp descending price channel is still plummeting on the hourly charts as per Bitcoin price analysis. The triangle’s lower boundary is being tested and the consolidation is leading to pressure on the bulls to stage a comeback. The bearish wedge is not helping the bullish case as the price is moving lower on the higher time frame charts.

Bitcoin price analysis conclusion: Bulls need massive volume

The lower trendline of the falling triangle pattern is showing a stagnation. Whether it will move higher or lower depends on the price action near the bearish wedges. If rejected, the price will swiftly move towards lower end near $18,000. The descending trendline will define the trend and can further plummet the price towards $16,000 in worst case scenario.

Given the current uncertainty in the financial and crypto markets, predicting a definite trend can cost traders huge losses. No wonder even day traders are sitting on the sidelines and analyzing the eco-system before committing to large trades.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2022-07-17/