Published 10 hours ago
The Bitcoin price remained offered amid a lukewarm trading session on Monday. The price opened higher but fell quickly to test the intraday low of $21,702. However, as influenced by the previous week’s price action, it moved back to reclaim the $22,000 mark.
- BTC price started the fresh trading weak on a lower note.
- Bulls were not able to withstand higher opening in the early trading hours.
- However, an impressive bounce back from $21,700 points at the range bound movement.
Why 22,000 is crucial?
BTC remained in a short-term consolidation that extends from $18,000 to $21,000 since June 16. The price breached the resistance zone on July 18, and testify one month near $22,780 with impressive volumes. In an earlier attempt, the asset was rejected near $22,490. Thus, the support-turned-resistance level is a make or break point for BTC investors. For today, the BTC price analysis remains neutral as prices are expected to move in a familiar trading range.
As of publication time, BTC/USD reads at $21,875, down 3.16% for the day. According to CoinMarketCap, the 24-hour trading volume jumped 10% at $28,700,215,128.
On the daily chart, the BTC after moves higher after giving a breakout out of the short-term consolidation. Next, it tagged the 50-day Exponential Moving Average (EMA) and return to a corrective pullback mode. Thus, it acted as a critical resistance level for the bulls to surpass.
The retest of $22,000 level makes it a psychological to hold. It would be marked as a make-or-break level for BTC buyers.
The RSI(14) is trading near 50 with a negative bias. The oscillator is about to break the RSI MA line, which is a sign of bearishness. If RSI goes below 49, then we can expect more downside in the asset.
Another important indicator, the trading volumes are below average, showing a lack of buying interest as the price approaches the support level.
A break below the session low would see $21,600 as the first downside target.
On the hourly time frame, the price is moving in a downward channel with an immediate support near 50.0% Fibo. retracement level at $21,800.
On the flip side, a buying interest could push toward the previous session high of $23,000.
Conclusion:
BTC is trading at the no-zone stage. A decisive break below $22,000 on a daily basis would open the gates for the more fall.
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-falling-volumes-hints-extended-consolidation-near-22000/