Apart from the weekly candle, which ended in the red, Bitcoin did not make any substantial moves and was still hovering around the $19,000 range.
Technical Analysis
By Grizzly
The daily chart
On the daily chart, Bitcoin is currently trading at the top of the $18,000-$18,500 support zone (in yellow). After the market crash in June, this support managed to prevent another drop. This was the second successful retest of this level.
If BTC closes a candle below $18,000, combined with increased selling pressure as a result of stop less activation, the asset will likely fall towards $16,200, creating a new yearly low, while the next level is at $14,000 (in green).
Alternatively, for Bitcoin to return to the bullish track, it must break through the resistance of the descending (blank) line. The price has repeatedly pushed this barrier since the all-time high was recorded.
This also merges with horizontal resistance at $20.6k. In case of a bullish breakout, the next target is likely to be $22.7k.
Key levels of support: $18,000 and $16,200
Key resistance levels: $20.6K and $22.7K
Daily Moving Averages:
MA20: $19884
MA50: $20,960
MA100: $21244
MA200: $28638
The 4 hour chart
Lower highs were formed due to the current downtrend in Bitcoin price (in red). High selling pressure in the market is evident on this chart, while BTC failed to close a candle above $19.5k last week.
The price needs to be pushed past the resistance line for the positive trend to continue. If $19.5K is breached, the next resistance is at $20.4K.
Chain analysis: MVRV ratio
Definition: The ratio of coins, market cap to realized limit, which indicates whether the price is overvalued or undervalued.
Historically, values above 3.7 indicated a higher price, while values below “1” indicated a lower price. Although both long and short holders have been losing money, this fund has not been as negative as others.
The chart below shows how far the index has reached historically. This index is currently at the levels it was before the fall of COVID-19 (March 2020). When MVRV gains momentum above 1 and rises to higher levels, a bullish rally is forecast.
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