Potential Descending Move Toward $21,000 On This Bearish Formation

Bitcoin’s (BTC) price is trading lower amid overall bearish sentiment. The price is still consolidating near the $22,000 level. This trading level also coincides with the short-term support-turned-resistance level. Thus, a crucial level to hold for the investors.

• BTC price extends the losses for the second straight day.
• The formation of the ‘Spinning’ top might reverse the recent upside move in BTC.
• The 24-hour trading volume fell by 14.85% to $42,324,564,870 on Thursday.

BTC price trades in red

On the daily chart, the BTC price is making lower highs and lower lows which indicates the presence of bearishness. The 50-day moving average also supports the theory, as the price continues to move down since March 2022. In the past whenever the price tested the mentioned moving average and formed a bearish or Doji candlestick pattern, it started to fall sharply.

After giving a bullish breakout from the short-term consolidation that extends from $18,000 to $20,000, it faces a good resistance of moving average and started to fall inside the range again. The recent price action gives an impression of a false breakout.  BTC from its lows of $18,890 gave good impulse moves without taking any pause. Hence, BTC might be looking for some retracement now toward $21,000 to $20,000

In addition that the formation of ‘Spinning top’ followed by the red candlestick hints at the continuation of the downside momentum.

On the hourly chart, a trend reversal is expected in BTC. The asset is previously making higher highs and higher lows, indicating bullish momentum.

Near the higher levels, the price formed a bearish “Head & Shoulder” pattern and broke the structure on lower levels. 

The reversal is yet to be confirmed, as BTC is retesting H&S Neckline 

On the other hand, an acceptance above $23,000 would challenge the bearish outlook.

As of writing, BTC/USD is exchanging hands at $22,630, down 2.48% for the day.

Conclusion: – 

BTC is sideways to slightly bearish on the higher time frame, but on the shorter time frame, BTC is about to change its trend on the bearish side. 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

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.