This week’s V-top reversal has completely nullified the recent recovery rally, indicating the sellers still hold trend command. Moreover, the coin price retested the immediate support of $18700, teasing a bearish breakdown. So is Bitcoin (BTC) going for a new 2022 low?
- The BTC/USDT daily chart shows seven consecutive red candle
- Bitcoin traders are experiencing demand pressure at $18700
- The intraday trading volume in Bitcoin is $16.25 Billion, indicating a 35.6% loss.
On June 26th, the BTC price turned down from $21784, and since then, it has been on a constant losing streak. Thus, the coin’s market value depreciated by 13.36% as it reached the $18729 support.
However, during this downfall, coin buyers managed a daily candle closing above the $18900 support. In addition, over the last four days, the BTC chart showed several lower price rejection candles at this support, indicating the buyers continue to defend it.
Furthermore, the long-tail rejection candles on June 8th and 9th suggest the range from $18900 to $17600 can be considered a strong demand zone. Thus, a bullish reversal from this zone could encourage a genuine recovery rally and surpass the $22000 mark.
On a contrary note, the $17600 support breakdown would indicate the continuation of a downward spiral, with the nearest target support at $16500.
RSI indicator- the RSI slope nosedive below the 14-SMA and neckline of the oversold region, indicating traders have overextended the selling. Moreover, the bullish divergence with respect to the last retest to this support bolsters the reversal theory.
ADX indicator- Despite a significant sell-off this week, the ADX slope didn’t respond enough, indicating a loss of bearish momentum.
Bollinger band indicator- the lower band slope aligned with the $18900 support enhances the defense power of these levels. Moreover, the indicator range has shrunk significantly, suggesting slight uncertainty in the market.
- Resistance level- $20000 and $22000
- Support level- $18000 and $16000