BTC Price Scrutiny: Technical Indicators Point To A Forthcoming Recovery
The V pattern made by BTC has completely canceled the rally and it seems that the bearish sentiments are still prominent in the crypto sector. The number one crypto coin price retested the immediate support of $18700 and a bearish breakdown is possible. So is the BTC going to create a new record of the nadir?
Bitcoin traders are facing new pressure at $18700. As one can deduce from the chart above there are seven consecutive red candles. The interday trading volume in Bitcoin is $16.25 Billion and reveals a 35.6% .
BTC On A Losing Streak
BTC has been on a constant losing streak since June 26 when it fell from $21784 and has been falling since then and the market value shrunk by 13.36% as it reached the $18729 support. During the course of the downfall, buyers accomplished a daily candle closing above the $18900 support. In the past four days, the BTC chart reveals that there are several lower price rejection candles at this support and the buyers will continue to defend it.
Looking at the long-tail rejection candles on June 8th and 9th reveals that the range from $18900 to $17600 can be classified as a strong demand zone. A bullish recovery is possible from this zone and it could possibly cross the $22,000 mark.
However, if a support breakdown occurs at $17600, it is bad news and the sinking of values will continue with the nearest target support at $16500.
IF the RSI slope tanks below the 14-SMA and neckline of the oversold region, it is a sign that the investors have overextended their selling. The bullish divergence theory with respect to the last retest to this support is reaffirmed.
ADX Benchmark-The week has seen a significant sell-off but the ADX slope did not react strongly and indicates that the bearish momentum is slackening.
Bollinger Benchmark- The lower band is aligned with the $18900 which adds strength to these levels but there is uncertainty in the market.
Resistance level- $20000 and $22000
Support level- $18000 and $16000