Bitcoin lost nearly 20% of its market value in the last week. The king coin has been under bearish pressure for the sixth week in a row. The coin retested the levels touched last August.
The price had attempted a brief recovery as BTC attempted to push the price to $32,000 over the past 48 hours. Since Bitcoin broke above the $37,000 level, the asset has been in free fall. Bitcoin’s all-time high of $68,000 was obtained in November 2021.
The $37,000 price mark has been a support level for years. The ongoing long-term liquidation spree has brought Bitcoin back to the $30,000 price mark.
Given that sellers have taken over the market at the time of writing, the upside seems unlikely. A sustained decline will lead BTC to drop below $30,000.
Bitcoin Price Analysis: One Hour Chart
At the time of writing, Bitcoin is trading at $30,100. The $30,000 price level has been a strong support level for the coin, however, with continued selling pressure, the price may drop below this level.
The aforementioned support level is also an area of strong demand for the coin, and if buyers find their way back, BTC could hit the $37,000 mark again. Panic selling could push BTC towards the $22,000 price level.
this Fear Index Market share continues to be high amid a major sell-off across the industry.
Bitcoin is showing downward momentum (white) on the one-hour time frame, a reading that confirms a consistent bearish action. Bitcoin’s trading volume is shown in green, which may highlight that the asset’s price may be trying to make a comeback, but this is unlikely as BTC is trading near major support areas.
Bitcoin is trading below the 20-SMA line, which shows that sellers are still active in the market. Price momentum is driven by sellers in the market. At the time of writing, BTC is bordering the oversold region. A push from buyers will help BTC trade above the 20-SMA line.
Interestingly, the RSI has something else to say. The price of BTC has caused a lot of selling pressure to pour in, but the chart shows a bullish divergence (white). A bullish divergence from the RSI could mean BTC can climb north, but the chances are very slim.
Related reading | TA: Bitcoin struggles below $32K, why the downtrend will resume
Bitcoin has been forming a bearish flag over the past few months. This is a signal that BTC is about to undergo a price drop. Despite the formation of a falling wedge pattern (yellow) that is considered bullish, a breakout from the same inside caused the BTC price to fall further. A rebound cannot be ruled out, but the bearish pressure appears to be too strong at the moment.
The Moving Average Convergence Divergence (MACD) indicates price momentum and continues to build bearish pressure. Confirming this, the Awesome Oscillator also depicts a minimal green signal bar below the zero line, highlighting negative price action on the chart.
Related reading | TA: Bitcoin falls to $30,000, why a short-term recovery seems likely
Featured image from UnSplash, Charts from TradingView.com