Bitcoin has seen a decent recovery within an upward channel since early July. Nevertheless, the resistance at $23.8K – $24.4K triggered a slump, dragging the king lower and confirming a patterned breakdown.
The present selling momentum has triggered a bearish overturn on the Exponential Moving Average ribbons. Considering reversal tendencies around the $20.8K mark, buyers might target a closing above the $21.6K obstacle in the upcoming sessions.
A close beyond this hurdle might position &BTC for short-term uptrends before a possible bearish move. While publishing this news, BTC traded at $21,399.
Bitcoin Daily Timeframe
Buyers have revealed resilience within the past two months after encountering December 2020 lows during mid-June sessions. Consequently, Bitcoin jumped beyond its 4-month trend-line resistance, flipping it to support.
An approximately 32% return on investment at this period bolstered Bitcoin’s surge beyond its Exponential Moving Average ribbons on its daily chart. While writing this content, Bitcoin strived to recoup from the latest upward channel breakdown.
The 20.8K upholding its stance in investors might translate to a slow period around its POC (Point of Control). Such developments would have the token’s potential targets around the $22.5K level.
Nevertheless, sellers might target to restrict the bullish superiority, considering the southbound 20 Exponential Moving Average following ribbons’ bearish flip. Moreover, the latest selling volumes surpassed the short-term buying momentum.
Any decline beneath $20.8K might confirm a selling signal. That might see sellers provoking a retracement towards $19.8 before reversal hopes emerge.
Reasoning
The RSI’s (Relative Strength Index) drop under the equilibrium matched the bearish superiority. Bulls should propel the indicator’s growth into the midline for a bullish bias in the short term.
Surprisingly, the VO (Volume Oscillator) dropped beneath the zero level amid the latest candles. This outlook indicated the absence of buying pressure at the moment. Nevertheless, the ADX flashed a weak indicator for BTC’S trend.
Conclusion
Considering the confluence of the support at $20.8K and the Point of Control (POC), Bitcoin buyers should aim to halt the ongoing bleeding. Nevertheless, bearish crosses on the Exponential Moving Average ribbons plus the absence of volumes see Bitcoin in a fragile condition. Targets would stay as discussed.
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