What the rejection at $19,000 now means for the Bitcoin price
- Bitcoin price has breached the $19,000 price zone.
- BTC price was rejected from the 8-day exponential moving average
- A double scenario is now underway, and key levels have been identified.
Bitcoin price gives into the bearish vice grip as the bulls have abandonded ship near the $19,000 support zone.
Bitcoin price heads south
Bitcoin price has validated last month’s trade idea as the bears have successfully breached the $19,000 barrier. Last month, the 1-1 reward to risk ratio was issued while the Bitcoin price hovered directly over the 200-Week Moving Average (WMA).
Bitcoin price currently auctions at $18,756. Amidst the 26% downtrend (since the summertime highs at $25,211), the bears have shown a persistent uptick in volume. The 8-day Exponential Moving Average rejected the bullish re-entrance of the $20,000 barrier and catalyzed the final 5% decline into the current market value.
Bitcoin price now has a double scenario in play. More declines could occur on the bearish side of the coin, targeting the June 18 swing low at $17,622. If market conditions persist, the Bitcoin price is already on its way toward its target. Such a move would result in an additional 7% decline from the current market value.
On the contrary, the massive liquidity breach could give power to institutional and smart money operatives looking to trap retail bears. A hurdle over the $20,200 zone could induce a recovery rally toward the 200-Week Moving Average at $23,178, resulting in a 23% increase in the Bitcoin price.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
