Bitcoin price analysis: Reversal hopes dashed as BTC touches $20,700 lows

Bitcoin price analysis has turned negative as BTC has broken below $21k level. The move towards $20,900 has taken the buyers for a ride as short-term positions have been wound up. Buyers are getting jittery as lower supports near $20,800 are being demolished on the hourly charts.

Source: Coin360

Currently, BTC/USD pair is moving in see-saw range between $21,000 to $20,700 with minimal upside potential. The Bitcoin price analysis shows that the negative bias is strong in the market as reversal signs are getting more pivotal. The downside momentum is getting stalled near $20,800 as suggested in hourly Bitcoin price analysis.

Bitcoin price movement in the last 24 hours: $21k must hold for bullish hopes

As BTC price continues southward movement, the bulls are getting disoriented. The recent move towards $22k now seems temporary. The crucial price point at $20,800 still remains a beacon of hope. At present, the daily close above $21,000 remains a crucial psychological point for the Bitcoin investors. The much-awaited breakout seems to be a red flag as the price has not been able to maintain course above the 50-day EMA.

Source: TradingView

In case the price closes under $20,650, the sellers will intensify their selling activity to take the price further lower. Soon, BTC/USD can see $20,000 printed on the hourly charts. The downward move from $22,300 has been swift. The volumes in bullish trades have expired and further confirmation is awaited from technical indicators that seem neutral with a bearish bias. The ‘Doji’ candlesticks on the charts are another sign that price will be rejected from current levels.

BTC/USD 4-hour chart: Consolidation lower can intensify selling

The 4-hour timeframe suggests that the BTC/USD pair is in consolidation. The recent swing high of $22,300 is now resistance. Neutral readings from the momentum oscillator also discourage any sharp bullish move. As of now, the BTC/USD is hovering near $20,900 and the trading volume is dropping signifying a winding up of positions.

Source: TradingView

The upper barricade at $22,000 supports bears. The Bitcoin price analysis suggests that the lower levels will invite profit-taking from the bears especially at $20,000 price level. Sellers have seized the opportunity and turned most technical indicators negative on the hourly charts.

Bitcoin price analysis: Conclusion

On the macro front, the Chinese bank failures are sparking renewed fears in the financial markets. The global crypto regulatory front seems to be calm at the moment. Bears will have to muster large volumes to gather downward pace.

As per Bitcoin price analysis, short-sellers have to be careful since the downswing move from $22,300 has support at $20,650 where the current bearish trend can stall. However, that does not mean that buying opportunity coincides with swing low. Bulls will have to wait for more confirmations from technical indicators for buying frenzy to start again.

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