Bitcoin, the world’s largest cryptocurrency continued its bearish trend and fell below $21,000 for the first time since July 17. The technical indicators strongly favor the bearish trend, and the currency’s new challenge will be to avoid falling below the $20,000 mark. Fxempire reports that a 10.17% price downfall on Friday affirmed the bearish market pattern; Bitcoin ended the day at $20,835; strong bearish forces might lead to a sub $20,000 price. Bitcoin fell below the day’s primary support level after a bearish start. The influx of the BTC sell-off has to lead the downfall of Bitcoin’s Fear and Greed Index from 33 to 29.
Bitcoin’s fate uncertain despite favorable economic indicators
The influence of the Fed’s monetary policy has been detrimental for Bitcoin as it has increased the sell-off. Bitcoin’s market scenarios show no improvement signs despite an improved economic situation. Bitcoin is under immense pressure to return to its earlier price; otherwise, we might witness one-way traffic. Reports suggest that Bitcoin’s Fear&Greed Index should reach 40 for $25,000. A further decrease in the index might lead to a more significant price decline; a fall below the $20,000 mark might indicate a price lower than the year’s low of $17,605.
Bitcoin’s technical indicators
Bitcoin’s market graph is problematic; a break from the $21,608 pivot is necessary to move towards the First Major Resistance Level (R1) at $22,426. It might propel BTC to $23,000 and above. A downfall below the $20,000 mark will introduce BTC into the extreme zone and test the First Major Support Level at $20,017, the second Major Support Level at $19,999, and the third Major Support Level at $16,790. Bitcoin needs to avoid the year’s low to start consolidation; investors will remain doubtful about Bitcoin’s future.