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Since the beginning of April, bitcoin has been in a virtually recoilless fall and has lost more than 62% of its value during this time.
On July 18, bitcoin tested the area below $ 18,000 ($ 17,622 according to Binance), then rose above $ 20,000 and has since shown a sideways movement. The area of $ 19-20 thousand corresponds to the maximum of the previous market cycle of the cryptocurrency (2017) and plays the role of strong support.
1-week bitcoin chart based on data from 9 major exchanges. Source: Cryptocurrency Screener Top Traders Tools
Analysts at Top Traders stated that the week closed at $21,038. This means that the price continues to stay above the support zone.
Top Traders noted the following negative factors:
- The bearish trend continues.
- The RSI index is in a bearish zone on the weekly chart.
- The price has fixed below the 200-week moving average (WMA200).
But there are also positive indicators:
- Bearish mood of market participants.
- The index of fear and greed is kept at a level close to the minimum.
- The support zone coincides with the level of 0.786 Fibonacci, which is confirmed by the entry of volume from buyers.
- The first positive weekly delta was registered in 5 weeks (the third in 20 weeks).
The Index of Fear and Greed. Source: alternative.me
From the point of view of analysts, such a deep drop in bitcoin can not remain without correction. In the range of $ 20-29 thousand there are no significant levels, so we should expect a rise in price to the resistance zone of $ 29-32 thousand.
Speaking of lower timeframes. The trader of the Amsterdam Stock Exchange Michael van de Poppe (Michaël van de Poppe) analyzed the hourly chart and stated that bitcoin failed to keep support at $ 21 thousand He noted that the preservation of $ 20,800 will open the prospect of another test of the $ 20.6 thousand zone.
1-hour chart BTC/USDT. Analysis by Michael van de Poppe
So, we are waiting for a rebound to $ 29-32 thousand, but not right now.
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