BTC Technical Analysis: Will Bitcoin Tank Under $20,000 This Week?

The BTC price action shows a relief rally over the weekend, but the lack of bullish momentum threatens a downtrend breaking under $20,000.

Key Technical Points:

• The Bitcoin (BTC) market price dropped by 12% last week.
• The 3% bullish recovery over the weekend retests the bearish breakout of $21,875.
• With a market cap of $410 billion, the intraday trading volume of Bitcoin has decreased by 10% to reach $22.94 billion.

Past Performance of BTC

The Bitcoin (BTC) price action shows a bullish failure to rise above the $25,335 level and the 100-day EMA due to the increased supply pressure. The correction phase breaks below the 50-day EMA and the long-coming support trendline, accounting for a 12% price drop last week. Moreover, the Bitcoin market price tanks below the $25,000 mark and retests it over the weekend with a 3% recovery with minimal intraday trading volume.

Source — Tradingview

BTC Technical Analysis

The BTC prices may shortly restart the bearish trend with a boom in trend momentum as a post-retest reversal rally. Moreover, the upcoming trend may test the crucial bottom support at the $18,847 mark resulting in a drop below the psychological mark of $20,000. As the market price falls below the 50-day EMA, the possibility of a bullish crossover between the 50 and 100-day EMA nullifies. The RSI indicator displays an extraordinary rise in the underlying bearishness as the RSI slope falls to the oversold boundary. Moreover, as the negative histograms intensify, the MACD indicator signals a selling opportunity with the increasing bearish gap between the fast and slow lines. Hence the technical indicators maintain a bearish bias for the upcoming trend. In brief, the BTC technical analysis projects a high likelihood of a downtrend crossing under the psychological mark of $20,000.

Upcoming Trend

BTC prices can reach the bottom of $18,875 if the buyers fail to assert dominance at the crucial support level of $20,000. However, the bullish reversal crossing above $21,875 can retest the 50-day EMA at $23,000. Resistance Levels: $21,875 and $23,000 Support Levels: $20,000 and $18,847

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