- Bitcoin price shows weakness as it gets rejected by the 200-week SMA at $22,559.
- A daily candlestick close below the $20,726 to $19,284 demand zone could trigger a sweep of $17,591.
- If BTC recovers and flips above the 200-week SMA at $22,559, it could attempt an upswing to $25,000.
Bitcoin price tried to breach through the significant and high-time frame resistance barrier but failed. As a result, the downswing that emerged pushed BTC lower and the June 11 sell-off has currently pushed it below the $20,000 psychological level.
Bitcoin price reveals its hands
Bitcoin price moved above the $17,591 to $21,706 range on July 8, indicating an overwhelming surge in buying pressure. This rally soaked up the selling pressure and still moved higher to retest the 200-week Simple Moving Average (SMA) at $22,559.
Due to the arduous nature of the journey, Bitcoin price and the bullish momentum faced exhaustion upon the retest, resulting in a sell-off. As a result, BTC dropped hard and fast and is currently approaching the midpoint of the aforementioned range at $19,649.
If this momentum continues, Bitcoin price is more than likely to retest and sweep the range low at $17,591. While this move is a conservative outlook, a daily candlestick close below this level will signal otherwise.
In such a case, investors can wait for a secondary confirmation, which will be a weekly close below the $19,000 level. Assuming bears manage to pull this off, the market participants can. expect the Bitcoin price to trigger a crash to the $15,000 psychological level.
BTC/USD 1-day chart
While the bearish outlook does look more than gloomy, it is possible, at least from a technical standpoint. Further adding credence to this scenario is the talk of Mt. Gox releasing roughly 150,000 BTC.
This flooding could potentially trigger a selling pressure that will push Bitcoin price lower.
However, if Bitcoin price produces a decisive daily candlestick close above the 200-week SMA at $22,559, it will invalidate the bearish thesis. In this case, BTC could trigger a quick run-up that retests the $25,000 hurdle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?