Bitcoin Price Prediction: Tough battle for BTC bulls to defend $20,000 has started

UPDATE: Bitcoin price prediction continues to be a tough proposition as the crypto market continues to trend south, despite bulls showing some intent to fight around psychological key levels. This was certainly the case on Wednesday for Bitcoin, as the key $20,000 was defended ahead of the Federal Reserve 75 basis-point interest rate hike. The market had already priced out an aggressive rate hike like that one in the previous days of losses, which helped BTC gain some ground above that key price area. Thursday trading has re-initiated the bearish price action, though, and the biggest cryptocurrency is losing almost 8% for the day at the time of this update (10.20 GMT). Another busy day is expected in financial markets with the Bank of England meeting imminent, set to continue with the tightening monetary policy swing all central bankers seem to keen to take to battle inflation.

Bitcoin price remains bearish but is now above a support level that has historically marked bottoms for multiple bear markets albeit sometimes with a deviation below it. As sellers slow down their offloading, investors can expect Ethereum, Ripple and altcoins, in general, to start a minor relief rally. 

Bitcoin price needs to decide

Bitcoin price has flipped the $29,563 support level into a resistance barrier as it crashes 30% over the last two weeks. This downtrend has also allowed BTC to tag the 200-week Simple Moving Average (SMA), which marked the 2018 and 2020 bear market bottoms.

This level also served as a support level during December 2020, which triggered a massive run-up to $30,000. Hence, the Bitcoin price revisiting this level is a sign that the buyers are going to start stepping in.

Hence, investors can expect a relief rally for BTC. As for the upside objective, market participants can count on bulls revisiting Monday’s high at $26,882.

BTC/USD 1-week chart

While things are looking up for Bitcoin price, a failure to move above the $23,480 resistance barrier will prematurely stop the relief rally. If BTC produces a weekly candlestick close below the 200-week SMA at $22,383, the downtrend will likely continue. 

Ethereum price faces decisive moment

Ethereum price crashed 40% over the last two weeks and flipped the high volume node at $1,270 into a resistance barrier. Although ETH dug as low as $1,075, the recovery has pushed it up by 12% to $1,208.

While this bounce is impressive, investors need to wait for a flip of the $1,270 hurdle into a support level. Assuming the bulls are successful, this move will suggest that a recovery rally to $1,730 could be plausible for Ethereum price.

ETH/USD 3-day chart

On the other hand, if Ethereum price faces rejection at $1,270 due to a lack of buying pressure, it will indicate the possibility of consolidation under this level or slide lower. 

In some cases, ETH could crash by 19% and revisit the upper limit of the price inefficiency extending from $964 to $383.

Ripple price approaches launching pad

Ripple price has crashed 28% over the last four days, from $0.411 to $0.293. This downswing has pushed XRP into the weekly demand zone, extending from $0.240 to $0.315. This tailwind increases the remittance token’s chance to trigger a bounce.

The incoming relief rally could see XRP price climb 20% to the immediate hurdle at $0.381. 

XRP/USD 1-day chart

Things are looking relatively better for Ripple price due to the $0.240 to $0.315 weekly demand zone. However, if sellers make a comeback, pushing the XRP price to produce a weekly candlestick close below $0.240, it will create a lower low and invalidate the chances of a relief rally.