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Price Analysis: BTC/USDT

Bitcoin is sliding lower, influencing all the rest of digital assets and pulling them to critical support levels. More so, this situation is also testing the resolve of traders who were expecting a bullish reversal.

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Bitcoin’s (BTC) roof has been drifting lower in the recent weeks, and this is considered a negative sign, since it demonstrates that bears prefer to sell on every small rally. Bitcoin’s downturn is affecting the major digital currencies, and as you masy see – most are gradually drifting lower.

LMAX Forex strategist, Joel Kruger, said:

“It would be foolish to rule out the possibility for a drop back below the June low, and we think there would be a risk in that scenario where the Bitcoin price could revisit the old record high area around $20,000.”

Nevertheless, Bitcoin’s fundamentals seem to have become better. The network hashrate had taken a big knock because of China’s recent clampdown on miners, but it is little by little coming back to normal following the data from numerous on-chain channels. This demonstrates how the network has balanced itself without the need for assistance from any external agency.

Will Bitcoin’s price stick to the hashrate higher or will bearish sentiment prevail? Let’s study the BTC/USDT data to find out.

BTC/USDT

Bitcoin has been failing to rise above the 20-day exponential moving average ($34,245). This is a bad sign as it demonstrates that bears are strongly defending this resistance. The price has shifted down from the 20-day EMA today and the bears will now attempt to pull the price further down to $31,000.

The 20-day EMA has begun to shift down again and the relative strength index (RSI) has decreased below 45, showing that bears are trying to gain the upper hand. A break and close below $31,000 will be the first sign of the potential restart of the downtrend.

The selling could keep going even more intensively in case the $28,000 support cracks. That could end in long liquidation, which may further pull the price down to $20,000.

Opposite to this assumption, in case the price turns up from the current rate and breaks above the 20-day EMA, it will show accumulation by the bulls. A break above the 50-day simple moving average ($35,594) and the $36,670 resistance zone will signal strength.

 

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