Bitcoin price analysis shows that the pair is struggling near $$22,000 and all hopes of a renewed rally are now over. The steep fall in the price of BTC/USD is showing that the bears have the upper hand. The large red candlestick on the hourly charts reflects the bearish bias in the crypto market as most coins are down before the weekend. The sharp move is attributed to false consolidation where bulls did not build large positions as per Bitcoin price analysis.
The bullish rally fizzled out and the pair is facing stiff resistance at $23,000 resistance. The widening Bollinger Bands reflect that more pain is coming in the market. The equity markets are touching overbought levels and the global macro indicators are neutral. The geopolitical tensions are also giving rise to higher volatility in the emerging markets.
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Bitcoin price movement in the last 24 hours: Massive move downwards
The last few hours shows that the bulls are not able to defend even the $22,000 support since the pair touched $21,404 level. Bitcoin price analysis shows that the pair is moving towards $21,800 as the quick bear rally stabilizes. The bulls are in extreme caution as the small day traders are closing their long positions. The correlation with stock markets will only make the matters worse for the BTC bulls.
The overhead resistance at $24k seem pretty strong to overcome on a daily basis. After three consecutive rejections, the price dropped sharply towards $22,000 support zone. The long-wick red candlestick shows the bearish resolve of the short-sellers. There can be buying efforts near $21,800 price level but extreme caution is advised to day traders.
BTC/USD 4-hour price chart: Bears are in the driving seat for now
The 20-day EMA is pushing the price even lower and encouraging bears to open more short positions. The Relative Strength Index is also showing a sharp drop in the prices in the last few hours. As per Bitcoin price analysis, the pair even dropped below the 50-day simple moving average near $22,100. Further breakout in the price can lead to lower levels below $20,400 where the bearish rally can take a breather.
Since the current scenario is turning bearish, traders can look to lower support zones at $19,500 and then at $18,000. The price has been completely rejected from upper Bollinger Bands lines where the large bearish triangle is showing further fall in the prices.
Bitcoin price analysis conclusion: Technical indicators turn bearish
The BTC/USD pair has finally made a move towards lower direction after days of sideways movement. Unlike the bulls, the bears are mounting offensive with large short position as is reflected in the volume data.
The massive bearish divergence is helping the bearish scenario. The bullish trendline seems to be making a potential down slide and negating large positions. Bulls need to wait for lower levels to buy BTC/USD pair.
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-2022-08-18/