Bitcoin is on the verge of retesting previous support levels. The number one cryptocurrency is facing a steady decline that has taken it to a multi-year low of around $17,000.
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Bitcoin is trying to reclaim previously lost territory, but negative news around the crypto space and monetary policy changes from the US Federal Reserve (Fed) continues to put selling pressure. At the time of writing, BTC price was trading at $20,000 with a 10% loss over the past week.
Analyst Michael van de Pope believes that BTC price remains in a good position after being rejected at $21,000. If the cryptocurrency manages to hold above $20,000, there is potentially more fuel for its bullish continuation. via twitter, analyst Told,
Sweep of lows and holdings. As long as $20k holds, it should be fine for a sweep of the previous high of $21K and then a higher high of $23K and a possible high of $24K. Moments are still open.
Data provided by the Content Indicator (MI) is recording some support for bitcoin below $20,000. This suggests that the cryptocurrency is likely to slide below its current levels.
However, there are around $19,000 in bids and orders for bitcoin at around $30 million. This area should act as a key support in case of further downside.
If those levels fail, there is still $40 million in bid orders between $17,800 and $18,000 that could provide an additional layer of support. Order book looks thin below these levels
Above the current price level, there are just over $20 million in orders near the $21,000 level. This level will continue to act as a key resistance area and a barrier for BTC price as it consolidates around the area.
Material Indicator Analyst share The following on the odds standing between BTC and future appreciation:
So we are waiting for confirmation. Despite sentiment and #TradFi gains yesterday, the rally lost momentum even before testing the 200 WMA. Now the fire chart shows there is ~$60M in Ask Liquidity between here and the 200 WMA range.
When will the price of bitcoin fall?
In this sense, analysts at MI stressed that it is impossible to know for sure when BTC will bottom. However, there are some clues that can help investors identify a downtrend in a bearish trend.
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For example, the price of BTC usually goes down and then goes into a longer period of consolidation. The analyst said via Twitter without putting another foot down:
The market is overdue for a rally, and the fact that a move below or below the 200 WMA has historically led to bull markets, we cannot validate this unless price starts at the 200 weekly MA. The major moving average does not recover.