Bitcoin (BTC) price is still trending at the 20k level further sinking the market into extreme fear. Traders and investors alike are not sure whether this asset will sink lower or recover. Our previous analysis shows that BTC is looking bleak.
Here is a breakdown of our analysis of Bitcoin’s next move.
Previously On Bitcoin Analysis
Last week on our weekly Bitcoin analysis, the asset had begun making some promising recovery. The main target was the 21-day exponential moving average (EMA). This would act as the first resistance support for Bitcoin on its way up.
However, if the bulls were going to be pushing rope this week, then a rejection could ensue and would lead the price of Bitcoin down to new lows.
This Week on BTC Price Analysis
The price of Bitcoin last week at the time of analysis was $20,503. Bitcoin was supposed to rally and test the 21-day EMA, putting it at $23,930 – this would have been a 12% increase. However, the asset was only able to rise 6.16% hitting $21,868 before facing rejection. Bitcoin missed the 21 EMA by 5.06%.
Bitcoin is trading at $20,050 as of the time of writing and has been trending downwards for the last three days, losing -7%. The previous price action led to the formation of a local support zone at $18,810, which the bears could easily slice through.
However, if for some reason the local support decides to hold out, then Bitcoin will have formed a nice double bottom pattern on the daily chart. A double bottom pattern indicates a bullish reversal and could send Bitcoin to $25,447.
This would put BTC above the 21-day EMA and ona clear path to the 200 EMA which lies at $37,254.
If Bitcoin fails to hold the $18,810 local support, the asset shall fall to $12,342. Most indicators point to further blood in the market over the coming week. Additionally, the crypto market cycle dictates that Bitcoin crashes by -85% to -95% after hitting an ATH price. Presently, Bitcoin is only down -69%. This shows there are some more losses to be incurred before the markets can turn green.
Stay tuned for updates and analysis about Bitcoin price every week