Bitcoin has been extremely choppy lately, with King Coin losing 7% over the past week. This is the worst quarter for bitcoin as the coin fell by close to 50% in the second quarter of this year. The cryptocurrency has noted its worst bearish price action since June.
Over the past few days, BTC broke below the $20,000 mark and touched the $19,000 level. A steady decline on the charts could push BTC to the next support line. The buying power has been significantly reduced in the past 24 hours pushing BTC to lower levels.
The bulls tried to revive on the charts and pulled the coin to $22,000, however, intense selloff pulled the coin to $19,000. The key support level for the coin was $17,000 and as the bears work harder, the above level could be a possibility for BTC in the upcoming trading session.
Global cryptocurrency market capitalization today is $914 billion 0.3% Growth in the last 24 hours.
Bitcoin Price Analysis: Four-Hour Chart
BTC was trading at $19,000 on the four-hour chart. The coin first traded at the same level a few weeks ago and then tried to recover on the charts. Resistance for BTC was at $20,000 and then at $22,000.
BTC has seen tight resistance at $22,000 as the coin struggled to trade above the same for a considerable period of time. If BTC’s current price momentum continues, $17,000 is only a matter of time.
Bitcoin’s trading volume declined significantly and the bar on the chart was showing bearish red. There was selling pressure in the market.
BTC registered a reduction in buying pressure in the market. The relative strength index was traded below the half-line near the 40-point mark. The indicator shows the buying power in the market. Though the indicator saw an uptrend, buyers did not gain confidence in the asset.
Parabolic SAR displays the price direction and trend reversals of the cryptocurrency. The dotted lines above the candlestick indicate a bearish market and a change in price direction. This indicates negative price action for Bitcoin.
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BTC saw a significant decline in buying power, but on the four-hour chart, the coin showed buying signals. The moving average convergence diverged, underwent a bullish crossover, which meant that the price on the charts could briefly move higher.
This created a green histogram on the MACD, it is tied to a buy signal on the chart. Although the indicator displayed a buy signal, buyers were still struggling in the market. Bollinger Bands depict the fluctuations in the price of the asset.
The narrowing of the bands is linked to the upcoming volatility in the market. The technical outlook suggests that BTC price may decline further and aim at $17,000.
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Featured image from Unsplash.com, charts from TradingView.com