Bitcoin price analysis shows that the recovery in the crypto market is short-lived as the price continues to evolve, look for patterns. As the pair revisits the $20,900 level, there are doubts that the price may not be able to sustain higher levels on declining volume. The recent low of $18,900 has market participants worried that sellers are still in control.
Large institutional investors and whales pointed to a decline in activity. Bitcoin prices have been stagnant for the past few weeks and last week looked no different according to a long-term Bitcoin price analysis. There is no doubt that the bears still have the upper hand in terms of sideways price action. There is an innate feeling among market participants that more lows will be created as price action lacks confidence.
Bitcoin price action in the last 24 hours: $21,000 rejected by buyers
Over the past week, the price of BTC has fluctuated between $22,000 and $19,000. A drop to $18,900 revived fears of another sharp drop to $17,000, but the bulls were in action. There is decent support near $18,000 in case of a quick decline. Prices appear to be stuck due to low trading volume and decreased volatility, according to Bitcoin Price Analysis.
Each macro event can trigger a chain of events that can push the price lower. A break of $18,000 could see the price drop further to $17,000 but technically the current security of the drop to $17,000 should encourage some buying. The gains could push BTC/USD towards the upper resistance at $24,000 and the 50-day moving average is also there, near $24,000.
A break from current levels could also inspire short-term day traders to take action, according to Bitcoin Price Analysis. A strong bounce can also bring higher levels like $27,500 into play and this will define the mid-term trend of the market.
BTC/USD 4-hour chart: Massive volatility awaits Bitcoin?
Big price moves are made when there is a large volume which creates a lot of volatility. Whether it becomes bullish or bearish depends on many factors. The accelerated growth phase is only possible when the macro news looks favorable. Higher levels like $22,500 can also trigger sell orders from bears
Bitcoin is moving to the bottom of the symmetrical triangle that limits the price. To support lower levels, bears should keep price below $21,000, while buyers should keep price close to the 20-day moving average. The RSI has been rising steadily over the last few hours to reach the 50 level where the price may stagnate in the short term.
Conclusion of Bitcoin price analysis
Day traders should not get false hopes for a big move higher. In the absence of big positive news or big volume, the price will only worsen. Bulls are also trying to push prices higher, but weekend volume will only push prices lower. The price bounced to the bottom of the triangle pattern at $18,500.
Overall, bitcoin price analysis remains bearish and the recent bearish dominance is fading fast. The bearish flag indicates more declines in the coming week.