Bitcoin price analysis is firmly within bearish territory after the massive crash that saw the BTC/USD touch $21,000 price level. After days of awaiting any decisive move, the bears decided to strike first and took the price 9 percent lower within a day. There is a bearish crossover in the 20-day and the 50-day exponential moving averages.
The technical Bitcoin price analysis is displaying a continuous sell-off and is giving advantage to the bearish rally. It seems like the history is repeating itself after three attempts to cross above $24,000. The rising wedge pattern is to blame for the sudden demise of the BTC/USD pair. It won’t be a surprise if the Bitcoin touches $20,000 over the weekend.
Bitcoin price movement in the last 24 hours: upper trendline broken by the bears
The rising price channel is no longer upward sloping after today’s fall. The support trendline has been broken and it seems that the BTC/USD will close below $21,500. Most of the equity markets are in the red after US Federal Reserve signalled that it will raise interest rates in September at a much higher rate than anticipated.
A little uptrend is expected to compensate for the massive crash but the overall theme of the BTC/USD pair remains bearish. If the selling continues over the weekend, the pair can test $20,000 support zone. The bearish pattern continues on the daily charts as the price broke past the lower Bollinger Band which has now extended till $19,000 region.
BTC/USD 4-hour chart: Technical indicators paint a bleak picture
The price is well below the 20-day and 50-day exponential moving average. Further drop in the price will only encourage bears to take big positions. The RSI is also moving below 50 level and indicates that more pain is coming. The bulls are attempting to mount defense near $21,000 but the bearish offensive is strong. The ascending price channel is no longer there to support long positions as per Bitcoin price analysis.
Short-term day traders have booked profits and long-term investors are not actively participating in the market according to Bitcoin price analysis. The ascending price channel has a lower trendline where the price can stabilize for a few hours near $21,500. However, it would be only a matter of time before bears decide to create sell positions near this zone.
Bitcoin price analysis conclusion: there’s no bounce off coming anytime soon
Considering the large crash and the bearish macro sentiment, the pair will only move lower. Bulls expecting a recovery will only find disappointment. The Bitcoin price analysis shows that there are bleak chances of the pair closing above $23,200 level where the 20-day EMA awaits the bulls.
A downward spiral can take the pair well below $20,000 psychological support over the weekend. Day trades are advised against taking large long positions.
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