Breaking: Bitcoin (BTC) Price Risks Falling Below $21,000, Here’s Why

Bitcoin (BTC) Price Risks Falling Below $21,000, Here's Why

The Bitcoin (BTC) price can fall below $21,000 as the bear hug tightens. The price recently touched a high of $25,135 and retraced to a low of $23,243. The downward price trend has formed a regular bearish divergence with a short-term target of falling to $21,000-$20,000.

The Crypto Market Fear and Greed Index has tumbled from 47 to 30 in just a week and 41 to 30 in a day.

Bitcoin (BTC) Price Can Decline Below $21,000 Amid Sell-Off

The Bitcoin (BTC) price has fared a bullish movement despite interest rate hikes and recession fears, making a rally above the $25,000 level. However, bulls are fading and need to show more power to keep the price in an uptrend. A slight selling pressure can negate the uptrend, pulling Bitcoin into the $21,000-$20,000 range.

Moreover, the Bitcoin (BTC) price trend in recent weeks has formed a bearish divergence pattern in the MVRV 7-day Detrend Oscillator. It suggests the BTC price can fall below $21,000. Applying a detrend filter to the price trends helps identify market bottoms and peaks by eliminating long-term price noise.

Bitcoin (BTC) MVRV 7D Detrend Filter
Bitcoin (BTC) MVRV 7D Detrend Filter. Source: CryptoQuant

Bitcoin (BTC) is in a downward trend for the long term, specifically since November. However, the price has shown upside movement in the last 1-month. The descending channel in a daily timeframe indicates the BTC price was preparing to break above the channel, but it fails to break the $25,000 psychological resistance level.

Bitcoin (BTC) Price in 1D Timeframe
Bitcoin (BTC) Price in 1D Timeframe. Source: TradingView

Moreover, the price trend seems to have changed after the recent pullback to $23,243. Bitcoin has now reached an inflection point that will decide the upcoming price movement.

The 20-EMA (red) did move above the 50-EMA (blue) to confirm bullish momentum. However, the bulls failed to build momentum and seem to be fading. The 20-EMA may likely move below the 50-EMA again, which will confirm a bearish movement below $21,000.

What’s Creating the Downward Pressure?

The U.S. Federal Reserve in Wednesday’s FOMC meeting confirmed the need to continue raising interest rates to control inflation. Moreover, Bitcoin social sentiment has fallen on the negative side and exchange inflows have increased.

The profit booking on upper levels is creating selling pressure. According to crypto analyst Michaël van de Poppe, it is crucial to break above $23.7k to trigger an upside movement towards $24,000. However, a retest below $23k can be expected for an upside move to $28k.

The post Breaking: Bitcoin (BTC) Price Risks Falling Below $21,000, Here’s Why appeared first on CoinGape.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin above 20K AGAIN! Is Bitcoin Price Bullish Today?

The crypto market is moving still in a sideways trend. Trading cryptocurrencies is being favored by crypto enthusiasts rather than simply buying and holding. The reason for this is that consolidation phases are much more predictable thanks to technical analysis. Crypto traders are loving the current crypto dynamics in the market. After Bitcoin fell to

Breaking: Do Kwon Linked 3,313 Bitcoin To Be Seized? S. Korea Deepens Probe

Trouble for Do Kwon, Terra co-founder seems to be increasing after Interpol issued Red Notice against him. In the latest hit, South Korean authorities have moved on to deepen their probe against the alleged crypto fugitive. Do Kwon to lose his Bitcoins? According to reports, South Korean prosecutors are moving… Read more

Bitcoin Skyrockets As Stock Market Crashes, Is It Breaking Correlation

The crypto market is experiencing a surprise bounce. Bitcoin has rallied from the $18K-$19K range to cross the $20K mark. It has increased by over 5% in the last 24 hours and is currently trading at $20.1K.  However, since the stock markets are dumping, Bitcoin looks to break the correlation…. Read more

Bitcoin and Crypto Defy Wall Street Meltdown With Strong Rally

Wall Street started the week in a correction mode with all three top U.S. indices correcting 1% on Monday, September 26. However, Bitcoin and the broader crypto market have made a surprising move northwards with the BTC price shooting past $20,000 levels. With the recent BTC move, more than $14… Read more