Bitcoin price analysis Bounce back fades as BTC retests $20,700

Bitcoin price analysis becomes volatile again. The sustainability of Bitcoin’s return to $22,800 is in question. The price fell towards $20,680 and the bears managed to sink the price of BTC/USD. The $20,000 support could be tested if the near-term rally fades.

As prices fluctuate and gains fail to quell selling fears, the BTC/USD pair will only move to lower levels. Light volume over the weekend may have pushed prices lower. The seller has not moved from the picture. The latest bitcoin price analysis suggests a downside move where the price could approach $18,800 again.

Bitcoin price action over the last 24 hours: Recent highs are slowly fading

A bearish reversal can be seen in the price action moving away from the 20-day EMA. The RSI is slowly rising and the main uptrend is disappearing on the hourly chart. Daily bitcoin price analysis shows intraday trading volume as low as $31.9 billion. There is a defined range for the BTC/USD pair as market participants wait for the clear picture to emerge.

Failed attempts to build on the upside to safely cross $24,000 will only complicate matters on the technical indicators front. Only aggressive buying by the bulls will shift the picture to the buy side. The daily chart also shows a sideways movement for the coming week as there is no change regarding the massive volumes. On the upside, support at $18,500 should provide good support for the pair.

BTC/USD 4-hour price chart: sideways move limits higher lows

Bitcoin price analysis shows that the pair has retested higher lows of the daily long candle. Supply pressure remains strong. The price is floating near the 20-day EMA and trying to create resistance above the $21,800 level. The recent failed attempt to surpass this price triggered the current sell-off, according to Bitcoin Price Analysis. Therefore, the hourly candle, if trimmed, could trigger another round of selling towards $19,000 later in the day.

The upper Bollinger Band indicates a downward movement with $22,688 as the higher level. It will prove difficult for the bulls to move above this level in the current context. The low is quickly approaching the $18,000 area, which could be a worrying sign for buyers. A range-restricted rally can quickly turn into a sinking bull trap. The RSI is slowly dropping back to the 40 level and the MACD is showing no immediate crossover signal.

Bitcoin price analysis conclusion: get ready for another move lower

With buyers losing their lead over the weekend, there is no hope for a quick bullish trend reversal. The price will only drift lower as the bulls don’t have enough leverage in the current context. There is no clear indication of a fresh move towards the $22,400 resistance level without a significant increase in volume.

The $18,500 support could be broken if the bull trap materializes along with the macro news. The $17,800 support will be the main concern for the BTC bulls. Bitcoin price analysis suggests a bearish start to the week as the pair resists a short-term rally.

x