BTC Holds Key Support At $21,300; Hold Or Exit?

Bitcoin price analysis implies an extended consolidation with a bearish bias. For the past few hours, the price is trading in green and is attempting to scale up to $21,750. The seller looks for fresh participation to roll down the price further.

BTC continues to harness a support zone after booking a single-day fall on August 19. However, the buyers should apply cautiousness as the price is still struggling below the $22,000 mark. This means there might be a struggle for BTC buyers and could hint at more pain ahead.

As of press time, BTC/USD is trading at $21,424, up 0.12% for the day. The 24-hour trading volume of the largest held at $32 billion with more than 8% gains.

• Bitcoin price consolidates for the third straight session.
• A daily close above $22,000 would make bulls hopeful.
• However, the momentum oscillators remain neutral.

Bitcoin price stabilizes before the big move

The Bitcoin price analysis on the 4-hour chart shows consolidation inside the bearish formation.

The descending trend line from the high of $25,214.57 made on August 15 acted as the resistance. The price faces rejection on August 18. A consolidation range of $20,800 and $21,800 is the current price structure.

BTC’s 50-hour exponential moving average is trending downwards and marking an upside barricade for the price. Despite the bearish sentiment exuded by the moving average, the formation of multiple Doji candlesticks indicates a short-term bounce back.

Further, the price dissects the downside trend line infusing some buying interest near the lower level.

The RSI shows positive divergence, meaning a recovery rally could be impeding. Currently, it reads at 44. Any uptick in the indicator would strengthen the upside outlook.

On moving higher, the bulls could reach out the 50-day EMA at $21,124.36. Next, market participants would explore $22,400.

On the other hand, a downside breakout of the range would intensify the selling pressure. In that case, the price could meet $20,400.

1-hour chart advocates for consolidation

On the hourly time frame, BTC formed a ‘symmetrical triangle formation. It briefly dropped to test the low of $20,889.89 but recovered sharply. The price tested the intraday high of $21,679.42 and glides inside the converging trendline of the mentioned pattern.

Also read: http://These On-Chain Metrics Explain the Underlying Weakness in BTC Rally

We expect the Bitcoin price to thrash the upper trendline and scaled up to $21,700. Further, an hourly close above $21,800 would introduce additional buying pressure on the coin.

However, a trade below $21,300 in the hourly time frame would negate any possibilities for the bulls. We could see an immediate downside target at $21,000 followed by $20,800.