Bitcoin continues to commerce above $20k per coin however could decline quickly if the broader market underperforms additional.
Bitcoin, the world’s main cryptocurrency, is at present buying and selling at round $20,200 per coin. This comes after failing to surge previous the $21k resistance degree on Tuesday regardless of including greater than 3% to its worth.
The broader cryptocurrency market has retraced after rising its worth by greater than 4% yesterday. So far right this moment, the crypto market has misplaced lower than 1% of its worth, with the whole market cap now round $990 billion.
After failing to maneuver previous the $21k resistance degree, Bitcoin is down by 1% in the final 24 hours. If the market continues to underperform, Bitcoin could drop below the $20k psychological degree for the second time in a week.
Key ranges to observe
The BTC/USD 4-hour chart is bearish as Bitcoin has been underperforming over the final 24 hours. The technical indicators present that Bitcoin is retracing after bettering its efficiency yesterday.
The MACD line dropped into the unfavorable zone on August twenty fifth and has remained there ever since. Thus, indicating sturdy bearish momentum for Bitcoin.
The 14-day relative power index of fifty reveals that Bitcoin could head down into the oversold area if the bearish momentum continues.
At press time, BTC is buying and selling at $20,293 per coin. If the bearish pattern continues, BTC could drop in the direction of the $19,588 help degree earlier than the finish of the day.
Unless the bearish momentum thickens, BTC ought to preserve its place above the $18,950 help degree in the quick time period.
However, the bearish grip is just not tight, and the bulls would possibly nonetheless regain management of the market. If that occurs, BTC could transfer previous the first main resistance degree at $21,059.
Unless there’s an prolonged bullish efficiency, the second main resistance degree at $22,722 ought to cap additional upward motion in the quick time period.