Bitcoin Price Analysis: Higher Price Rejection Suggests BTC Retesting $20000

Bitcoin (BTC) May Drop to $13,000, Says Trader Who Predicted Drop to $28,000

Posted 10 minutes ago

Last week, the price of Bitcoin (BTC) closed a weekly candle above the $20,000 mark, while the long tail rejection also added to the demand pressure. Although the crypto market witnessed high volatility this week, the buyers managed to hold above the mentioned level. However, the ongoing recovery facing strong supply pressure at $22800 predicts a minor pullback.

Key points:

  • The price of BTC registered a gain of 7.21% in the last four days.
  • The 20-day EMA strengthens the seller’s defense at $23,000
  • The intraday trading volume in Bitcoin is $17.7 billion, indicating a loss of 24.14%.

BTC/USDT ChartSource trade view

The drop in the second and third week of June plunged the BTC/USDT pair to a low of $17.78. Although the price of the coin gave a daily candle close below the $20000 mark on June 18, the intense buying pressure the following day pushed the price above the psychological level.

As a result, aggressive sellers caught in the $20000 counterfeit would currently be at a huge loss or might as well be forcibly liquidated. Also, former institutional investor- @Plan B has recently tweeted, “Bitcoin sellers realized a -$25B (-39%) loss in June (on-chain),” similar to some previous correction phases.

Therefore, the short-term sellers’ sell-off bolstered BTC price to hold above the $20,000 mark and trigger a further relief rally. In the last four days, the price of the coin has risen by 7.21% and is currently trading at $21,460.

However, the long-tailed rejection candle on June 21 and today (June 26) accentuates the high supply pressure near the $21,700 mark. Therefore, if seller pressure persists, BTC transactions can expect a retest at the $20,000 mark.

Conversely, if the bulls undermine the selling pressure, sustained buying momentum could push the price of the coin $6.57% higher to $22800.

Technical indicator-

The slope of the daily RSI breaks out of the oversold region and rises above the 20 SMA, reflecting that the price of the coin is stabilizing due to the aggressive sell-off.

However, a bearish sequence between the crucial EMAs (20, 50, 100 and 200) highlights an overall downtrend. Furthermore, the fast-moving 20 EMA aligned with $22800 could help sellers continue the prevailing downtrend.

  • Resistance level: $22,800 and $25,500
  • Support Level: $20,000 and $18,000

I have been working in journalism for 5 years. I follow Blockchain and Cryptocurrency since last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech to me on brian (at) coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.

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