Bitcoin price analysis: it looks like the bear market is not about to end. Nine months ago, Bitcoin reached $69,000. Since then, its price has been divided by three and the whole market seems to have entered a bear market.
This week’s sell-off in the crypto-markets worsened on Saturday, with Bitcoin falling below $21,000 for the first time in nearly a month.
Since Monday, Bitcoin has been marking bearish candles on its daily chart. The price is approaching the support of its bullish channel which has been forming since June. A break of this channel could still threaten $20,000!
Ethereum also continued its descent in today’s session, with the token’s price falling below the $1,700 level to start the weekend.
Bitcoin below the $22,000
Bitcoin continued to reside in the red to start the weekend, as prices for the world’s largest cryptocurrency fell below $22,000.
The price has come down under pressure from sellers. The crypto is already losing 6% as European markets open. This has been a testing week for Bitcoin, as BTC/USD hit the 200-day moving average. Unfortunately, we are seeing a rebound, as the price has been pushed down from this dynamic resistance.
As a result of these declines, the 14-day Relative Strength Index (RSI) dropped to a low of 32.97, which is its lowest level since July 12. Bitcoin prices have since rebounded and, at the time of writing, are back above $21,000. BTC is currently trading at $21,191.27.
Should this trend continue, it could signal further declines, with BTC likely to fall below $20,000.
Nevertheless, a bounce to this relatively low level to buy BTC would be well received by investors adept at technical analysis.
After a strong start to the week, ethereum began the weekend trading over $400 from Monday’s peak above $2,000.
ETH, which fell to a low of $1,695.15 on Friday, dropped even lower in today’s session, hitting a low of $1,611.34.
This is the lowest level at which ethereum has traded in the past 16 days, after falling below $1,600 on August 4.