Rejection – The price of Bitcoin (BTC) appears to be on its way to shake the $20,000 level, a level that could break again given the historical data.
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The price of Bitcoin in the red: fear of the FED or technical origins?
The price of bitcoin drops to $20,738 on Bitfinex today, July 26, 2022. The cryptocurrency is tentatively rising above $21,000. It is trading at $21,080 at the time of writing. Its price is currently recording a daily loss of 4.29%.
Some observers point to the FOMC meeting and the upcoming FED interest rate announcement as the explanation for yesterday’s prominent red candlestick and today’s bearish day.
But for trader Rekt Capital, these declines are “ the technical consequence of the rejection at the 200-week moving average, after the cryptocurrency closed last week below that level.
Rekt Capital also shared a 4-hour price chart of Bitcoin, which highlights a loss of the uptrend over the short term that formed before this last weekly close.
Towards a return below $20,000: unfounded fears or credible hypotheses?
The analyst il Capo Of Crypto also highlighted the downward trend in the price of Bitcoin in the very short term, on the relatively low time frames.
The chart he shared, shows a Bitcoin that would be trading in a descending parabolic bearish channel, despite the increases recorded last week, which then gave hopes of a recovery in the green. Visibly, the channel tends to narrow, and Bitcoin seems to be heading inevitably towards levels below $20,000.
Although this bearish outlook does not please traders and investors who hope to see Bitcoin hold above $20,000, the chart shared by analyst Matthew Hyland seems to confirm this ability of the bears to carry out another raid. , which will hurt the markets.
The analyst revealed a Bitcoin that has seen many “false breakouts on multiple occasions this year”. The chart further shows that each bullish false breakout, was followed by significant declines over several weeks or months.
This week will be decisive for the bulls, who must prove their ability to defend essential supports for the price of Bitcoin, failing to regain major bullish supports.
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