Bitcoin (BTC) Price Retracing To $21,000, This Remains Key Resistance Level

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Bitcoin’s (BTC) price is retracing to $21,000 after the massive sell-off negates the uptrend, as predicted in the previous report. The BTC price is now trading below the 200-weekly moving average (WMA) after falling nearly 9% to below $22,000 in the last 24 hours.

Bitcoin (BTC) Price Risks Falling to $20,000-$21,000 Range

Bitcoin (BTC) price rally comes to an end after the price entered a short-term overvalued region this week. As, a result, the BTC price retraced from the short-term resistance level after making a high of $25,135. Whales and long-term holder had sold their holdings after a pullback to the $23k-$24k range.

The Crypto Market Fear and Greed Index tumbles from 47 to 30 in a week as market sentiments turn negative. Moreover, the Federal Reserve confirming aggressive interest rate hikes in the coming months, massive sell-off pressure, and exchange inflows are causing the Bitcoin (BTC) price to break lower.

As reported earlier, the Bitcoin price trend has formed a bearish divergence pattern in the MVRV 7-day Detrend Oscillator. A bearish divergence pattern predicts an upcoming price fall. It suggests the Bitcoin (BTC) price risks falling to the $21,000-$20,000 range.

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

Bitcoin (BTC) bulls have faded as the recent sell-off has pulled the Bitcoin price in favor of bears. The Bitcoin (BTC) price is now trading below $23,000, the key 200-weekly moving average (WMA). Thus, a fall below $21,000 seems imminent.

 Bitcoin (BTC) 20-EMA and 50-EMA in 1D
Bitcoin (BTC) 20-EMA and 50-EMA in 1D. Source: TradingView

Moreover, the 20-EMA (red) did move above the 50-EMA (blue), generally considered a bullish trend. However, the bulls failed to build momentum. The 20-EMA moves below the 50-EMA again, confirming a bearish movement below $21,000.

As per Coinglass data, Bitcoin price recorded a total liquidation of over $168 million in the last 24 hours, with $150 million liquidation coming from long-term positions. Major exchanges including Huobi, Binance, and Okex accounted for over 90% of long positions liquidated in the last 24 hours.

Here’s What Popular Crypto Analysts Expect

Crypto analysts including Michaël van de Poppe, Crypto Tony, Crypto Birb, and BigCheds earlier confirmed a fall below the $22,700 level. Crypto analysts believe the 200-WMA will play a key role here.

Most analysts are positive about an upside move from lower levels. The Bitcoin price fall has given a “buy-the-dip” opportunity for investors as the short-term resistance is at the $25,000 level.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.



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