Bitcoin (BTC) trades below $23,000 against Tether (USDT) after weeks of showing strong bullish signs as investors shift sentiments from bull to bear trap.
The price of BTC failed to sustain its bullish structure as it breaks below zones leaving investors confused as Bitcoin trades just above the weekly key zone.
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Bitcoin (BTC) Trade Analysis On The Weekly Chart
Weekly BTC Price Chart Analysis | Source: BTCUSDT On Tradingview.com
From the chart, the price of BTC saw a weekly low of $22,800, which bounced from that area and rallied to a price of $25,200 after showing great recovery signs in recent weeks.
BTC’s weekly candle closed with a bullish sentiment with the new week’s candle looking bearish showing signs of weakness.
The price has struggled to build more momentum as it tries to hold key support.
If the price of BTC on the weekly chart continues with this structure, it could quickly revisit $20,800 acting as key support. The price of BTC needs to hold this support zone to avoid going lower to the region of $19,000.
Weekly resistance for the price of BTC – $22,500.
Weekly support for the price of BTC – $20,800.
Price Of BTC On The Daily (1D) Chart
Daily BTC Price Chart Analysis | Source: BTCUSDT On Tradingview.com
The price of BTC broke to the downside of a rising wedge with more sell orders leading to BTC breaking key support zones.
BTC’s price needs to bounce and form support above to avoid panic selling below $20,800.
Bitcoin has shown strength in holding this support, if bulls steps in we could trend higher to a region of $22,500 acting as the resistance for the price of BTC.
At the point of writing, the price of BTC is at $21,300, just below the 50 and 200 Exponential Moving Average (EMA) which corresponds to prices at $23,000 and $28,000.
The Relative Strength Index (RSI) for the price of BTC on the daily chart is below 35, indicating sell orders.
Daily (1D) resistance for BTC price – $22,500.
Daily (1D) support for BTC price – $20,800.
Price Analysis Of BTC On The Four-Hourly (4H) Chart
Four-Hourly BTC Price Chart Analysis | Source: BTCUSDT On Tradingview.com
The price of BTC has continued to show a bearish structure below the 50 and 200 EMA price corresponding to $23,000 acting as resistance for the BTC price.
If BTC fails to hold the support region of $20,800, we could see the price retesting the region of $19,000 as the next support area to hold the BTC price. After the retracement by BTC price, we would see a relief bounce before BTC’s next movement.
Four-Hourly (4H) resistance for BTC price – $23,000.
Four-Hourly (4H) support for BTC price – $20,800.
Related Reading: Ethereum Sends Red Signals, But Should You Worry About The Long Term? Featured image from zipmex, Charts from TradingView.com