Bitcoin price to provide a buying opportunity before rallying to $20,500

Bitcoin price is moving slowly as volatility seems to have disappeared after the Consumer Price Index (CPI) print on October 13. Since then, BTC has been attempting to rally higher but is blocked by a resistance level. 

Going forward, investors can expect a minor pullback before buyers band together and attempt another rally. 

Bitcoin price waits patiently

Bitcoin price rallied roughly 11% on October 13 but produced a daily candlestick close below the 30-day Exponential Moving Average (EMA) at $19,608. This volatile move was followed by a 3% pullback which failed to retest $18,934, the midpoint of the previous day’s range. 

As a result of buyers’ premature entry, BTC attempted to break past the 30-day EMA again on October 17 but failed to do so. On October 18, however, Bitcoin price faced rejection and was coupled with a spike in selling pressure.

Going forward, Bitcoin price is likely to continue on this path until it retests the midpoint at $18,934 or digs deeper and tags the buy zone, extending from $18,690 to $18,344. A resurgence of buying pressure in this area could likely propel BTC to retest the overhead hurdle, ranging from $20,306 to $20,737.

BTC/USDT 12-hour chart

On the other hand, if Bitcoin price fails to stay above the $17,917 range, it will indicate that the sellers are dominating. Such a development could see BTC sweep the June 18 low at $17,593, which could be a buying opportunity.

But, if this selloff produces a daily candlestick close below $17,593, it will create a lower low and invalidate the bullish thesis for Bitcoin price. Such a development could see BTC revisit the $17,000 psychological level for support.