Bitcoin has become stable at an important support level of $ 30,000. For more than a week, Bitcoin has been trading near the immediate support level.
Over the past week, the coin has lost up to 6% of its value and over the last 24 hours, the BTC is down 3%. The past week has been extremely rare for Bitcoin and also for altcoin due to continued market weakness.
The coin was down to $ 25,000, BTC finally trading about that price level in December 2020.
Bitcoin has recovered by $ 5000, however, the chance of a further downslide cannot be thrown out. The coin technique indicates continued selling pressure in the market.
Bitcoin Price Analysis: A Day Chart
Bitcoin was priced at $ 29,100 at the time of writing after the coin declined from the $ 31,000 price level. Direct resistance to the coin is at $ 25,000.
A fall below them would send the coin directly to $ 19,000. On the flip side, if the bulls post temporary relief then the coin will target moving above the $ 30,000 price level and trade close to the $ 31,000 resistance mark.
Bitcoin trading volume appears in the red indicating bearishness on the day chart.
Technical Analysis
Bitcoin may have been able to show signs of stability on the chart but further signs indicate that the coin could quickly go down again. King coin is trading below the 20-SMA line which means sellers dominate the price momentum in the market.
Support from buyers could push the coin above the $ 30,000 direct resistance. The support from buyers seems like an impossible situation considering how the coin has formed a bearish (yellow) flag.
The bearish flag indicates a further push from the bears and this could cause the coin to trade below the $ 20,000 support mark.
The coin has not touched the $ 20,000 price level in more than a year. The Relative Strength Index is below half the line indicating that the seller is still liable as indicated by the SMA line.
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The Bitcoin bearish flag reflects how the coin continues to go down on the chart after the pattern is formed. The bulls are tired of the constant fighting with the sellers. In accordance with the same reading, Awesome Oscillator flashed bearishness.
The indicator dictates the market price momentum and the red histogram below the half line means a sell signal for the coin.
If the sale continues to act, $ 20,000 may be on the chart. Chaikin Money Flow is responsible for reflecting the inflow and outflow of capital. The indicator is below half the line because outflows are still dominant at press time.
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