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) 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.
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
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.
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