Bitcoin Facing Major Resistance, Will $20K Hold or is Another Drop Coming? (BTC Price Analysis)

The market is trying to recover from the $18K support. There is however significant resistance around $20K. As the market remains largely undemanded, the bearish phase looks far from over.

Technical Analysis

By Shayan

The Daily Chart

For the past five years, the significant resistance to Bitcoin’s price has been the descending trendline (currently at $20.5K), Bitcoin has made a modest recovery and is now at the trendline for the 4th time. This level is also in line with the 50-day moving mean (at $20.1K), which represents a critical resistance for the price.

BTC will face significant resistance at $21K due to the overlap between the trendline and the 50-day moving Average. To retest the $25K primary resistance, it must be broken.

However, the market sentiment and decreased momentum suggest that the price is more likely to be rejected at this critical point and suffer another drop.

Source: TradingView

The 4-Hour Chart

Bitcoin is stuck between $18K support and substantial resistance at $25K, as stated. The cryptocurrency is currently advancing towards the upper trendline of the descending wedge.

Bitcoin is now forming a double-top pattern. This is a well-known bearish pattern. Bitcoin could fall back to $18K if the neckline breaks. Given the strength of the $20K-21K range and formation of this double-top structure, it is likely that the price will not surpass the trendline and plummet towards lower levels.

Source: TradingView

Analyse of the On-chain

By Edris

Bitcoin Net Unrealized Profit/Loss

The gruesome downtrend in Bitcoin is driving more holders underwater. A large number of investors still hold onto their coins at loss despite the fact that it’s falling.

Many people could feel pressured to sell their assets to avoid further losses. This scenario would make it easy for smart money to acquire Bitcoin at low prices and large amounts. This is why bear market bottoms occur, when the majority of market participants are losing.

The NUPL metric can be used to assess the unrealized profits or losses of investors. It could also be used to establish the price range at which the bottom might form. The chart shows that NUPL is currently located in the same area where bear market bottoms have occurred previously.

Although the price may drop further, the NUPL metric suggests that it could be very close to the bottom.

Source: TradingView

The post Bitcoin Facing Major Resist, Will $20K Hold Or Is There Another Drop? appeared first on CryptoPototo. (BTC Price Analysis), appeared first on CryptoPotato.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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