Bitcoin Price Analysis: BTC Recovers to $20K, Was Local Bottom Confirmed?

Bitcoin’s current price is testing the 2017 high of $17K to $20K. It is also constantly shadowing lower prices which indicates excessive pressure from sellers.

Yesterday, BTC hit a new 18-month low at $17.6K. It quickly recovered to $20K within hours. The downtrend momentum is not showing any signs of weakening. It’s difficult to predict a local bottom at the moment.

Technical Analysis

Technical Analysis By Shayan

The Daily Chart

Bitcoin’s price is at the $17-20K support level, which includes 2017’s all time high.

Good news is that a pullback towards one of the existing resistance levels can be expected based on market sentiment and a divergence in price and RSI indicators. The main obstacles to the climb are found below: the channel’s midtrendline and the 50-day moving mean line.

To be considered a bullish reversal, however, the price must break above $32K and the 50-day as well as the 100-day moving averages in order to do so.

The 4-Hour Chart

After a dull mid-term consolidation, price entered an expansion phase. It dropped sharply to $17K critical support level.

Below is a chart showing a descending channel pattern in the $17K-$20K support area. This is a bullish reverse pattern. If the price bounces off of the lower boundary, it will likely break the pattern to the upside.

Given the divergence in price and RSI metric over the 4-hour timeframe, and the mentioned descending channel it is possible for a short-term rebound towards $24K and even the $30K supply zones.

Analyse of the On-chain

Edris – On-chain Analysis

Bitcoin: Exchange Reserve – Derivative Exchanges

Bitcoin’s price is falling so fast that long-term holders, and some whales, are reacting by opening leveraged short positions, deploying their assets onto exchanges and decreasing their risk by hedging against future price drops.

This strategy is often used by long-term holders and whales to avoid the bear markets. This aggressive shorting could create more selling pressure and lower prices.

It would, however, open the door to a huge short squeeze if enough demand is met and the price suddenly turns in the favor.

Potential short liquidations and profit taking, which usually happen at market bottoms or capitulation, could cause a rapid rise in price and even a new bullish mid-term phase. Despite Bitcoin’s recent price action being extremely high, it could take some time before the final capitulation candle is possible.

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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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