Bitcoin Crashes to $23,000; How long until I hit $20,000?

Bitcoin has been bleeding for the last 48 hours. The crypto industry in general has been struggling to overcome the immense turmoil. For the past week, BTC traded between the $33,000 and $28,000 levels respectively, however, today, the king coin took an unhealthy nosedive.

Selling pressure mounted and BTC lost its longstanding $28,000 support mark because of it. Currently, the coin has broken below the $25,000 price mark, BTC has not traded below this mark since December 2020.

This level fueled a massive rally after December 2020, but BTC has continued to fall below the $25,000 mark at the time of writing. Financial markets, including traditional ones, have also suffered lately, while cryptocurrencies continued to suffer one massive setback after another.

The collapse of Terra along with other scams in the broader crypto industry has continued to cause industry-wide crashes. With BTC steadily giving in to bears, it is a matter of time until it hits its next crucial price support level.

Bitcoin Price Analysis: One-Day Chart

Bitcoin was priced at $23,000 on the one-day chart | Source: BTCUSD on TradingView

BTC has plummeted significantly in the last 24 hours and was trading at $24,000. In just one day, the coin fell by 14%. It has not revisited this level since the end of 2020. The immediate crucial support level for the coin is at $22,000. If the sellers are determined, BTC may also drop to $20,000.

The biggest resistance for Bitcoin was at $28,000. The amount of BTC traded in the last session saw a massive increase as reflected in the volume bars. The volume bar was also red, which is a downtrend sign.

Technical analysis

Bitcoin was oversold on the one-day chart | Source: BTCUSD on TradingView

Selling pressure was high as BTC continued to bleed in the last 48 hours. Previously, when BTC was trading sideways, the buying force was trying to get back into the market. Immediately after the consolidation, the coin broke below the crucial support level and buyers started to exit the market.

Consequently, the price of Bitcoin was seen below the 20-SMA line, which means bearishness. This meant that sellers were fueling the coin’s price momentum at the time of writing.

Similarly, the Relative Strength Index was below the 20 level and that means strong oversold market conditions. Typically, after a period of extreme selling pressure, the market sees a correction.

In the event of a correction, the price of BTC could try to trade above the $25,000 mark and approach the $26,000 level.

Related Reading | Bitcoin Weekly RSI Sets Record for Largest Oversold in History, What’s Next?

Bitcoin showed a sell signal on the one-day chart | Source: BTCUSD on TradingView

Bollinger Bands determine the volatility of market prices and the currency fell outside the bands. The bands opened up, indicating that price volatility was increasing. A drop from within the Bollinger Bands could also hint at a price reversal.

The buying force has to return to the market for that to happen. Awesome Oscillator that shows price momentum and also indicates a change in that, it reflects a shift towards bearish price momentum.

The indicator also showed red histograms and that meant a sell signal for the coin. The rising bar also hinted at increased selling power, however a change in price can be expected given the sharp increase in the number of sellers.

Suggested Reading | Crypto Markets Lose $100B as Bitcoin Drops Below $26K – More Pain Ahead?

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