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Bitcoin (BTC) Price Tanks To $21,000 Becomes Key Resistance Level

Manoj Nair



Bitcoin Price

Bitcoin is once again sliding down to $21,000 and the fall was already predicted earlier, cause the massive selloff which cancelled the uptrend in values. The number one coin has fallen below the200- Weekly Moving Average after tanking by more than 9% to below $22,000 in the past one day.

Possibility Of Bitcoin (BTC) Values Tanking To $20,000-$21,000 Range

BTC price surge has come to an end and the price is once again on a correction mode as the prices entered a short-term overvalued region this week. After making a shot to reach a high of $25,135, the whales and long-term holders started offloading their holdings after the price slid back to the $23k-$24k range.

With the Fed hinting of a harsher interest rate hike in the coming months has led to enormous sell-off pressure coupled with exchange inflows has precipitated the Bitcoin(BTC) values to tank miserably.

A bearish divergence path in BTC prices in the MVRV 7-day Detrend Oscillator had already hinted of a upcoming price fall. It suggests the Bitcoin (BTC) price risks falling to the $21,000-$20,000 range.

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

The Bitcoin (BTC) bulls who were aggressively investing became subdued and BTC prices rolled over in favor of the Bears. BTC prices are now changing hands below $23,000 well below the 200 weeklies and a fall below $21,000 seems imminent.

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

Analyzing the price chart it is evident that the 20-EMA (red) did move above the 50-EMA (blue), a sure indication of bullish movement. However, the bulls did not meet up to the challenge. The 20-EMA moves below the 50-EMA again, confirming a bearish movement below $21,000.

As per Coinglass data, there has been a total liquidation of over $168 million in the last 24 hours and it includes $150 million liquidation coming from long-term positions. The majority of the long positions liquidated in the last 24 hours were via Major exchanges including Huobi, Binance, and Okex

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