Bitcoin Price Could Still Slip Below $20,000, Warns Analyst –

Bitcoin voyaged into unchartered territories following its dramatic breakout move above $22,000 on Thursday. And now, the flagship cryptocurrency is clueless about where to trend next.

Traders have no historical reference to guess short-term support and resistance levels. Nevertheless, many of them have predicted extended rallies for Bitcoin in the wake of supportive fundamental indicators. They include ever-expanding institutional capital inflows into the cryptocurrency market and a retail euphoria led by a bearish US dollar outlook for 2021.

How To Get Free Crypto  

Amid the bullish frenzy, meanwhile, are a few warnings about potential bearish corrections.

The RSI Factor

Bitcoin’s price rally above $20,000 had made it an overbought asset per some technical indicator readings (read the Relative Strength Indicator). That requires a certain degree of sentimental neutralization that could only come if traders with short-term risk appetite start withdrawing their profits.

Bitcoin RSI is yet to top out, leaving more room for price to grow. Source: BTCUSD on

A pseudonymous analyst shared the same narrative in his note published Thursday morning. He said BTC/USD could extend its uptrend until $23,000-24,000. But then, the pair could correct by roughly 20 percent, a move that could have it crashed to as low as $19,000. Excerpts:

“BTCUSD tops out with a weekly RSI value of 87-90. The price corresponding to the weekly RSI of 88.5 is $23k. RSI of 53 gives significant support. Its price equivalent is $13.6k, rising by $500 per week.”

Calls for a breakdown move are coming from other fractions, as well. Independent market analyst Jonny Moe in his early Thursday tweet, alerted about a potential bearish reversal pattern forming on Bitcoin’s short-term charts. Titled “Rising Wedge,” the rising channel typically prompts an asset to break bearish after a prolonged surge.

Bitcoin forms the Rising Wedge pattern on a 5-minute chart. Source: BTCUSDT on

“The bears’ last stand,” commented Mr. Moe as he tweeted the bearish chart.

Bitcoin Growth Potential

On long-term charts as well—as the daily one listed above—Bitcoin is showing signs of reversal after testing the Ascending Channel range’s upper trendline. Traders may attempt to short the top with a short-term target towards the previous support near $19,000, followed by an extended sentiment towards the lower trendline, which sits around the $18,700-18,800 area.

Coinbase Banner  

But given the macroeconomic setup led by the Federal Reserve’s recent commitment to purchase Treasuries at the same pace and keeping interest rates near zero, it could mean that traders buy the next Bitcoin dip for their long-term bullish outlook. That would translate into the cryptocurrency rebounding towards the Channel’s upper trendline.

The resistance line would then be sitting somewhere near the $24,500-25,000 area.

Go to Source
Author: Yashu Gola

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.