Bitcoin price seems to have accepted that recovery is not possible at this momentum in time. Despite holding above $32,000 last week, this support has been overwhelmed amid the ongoing mid-week trading session. Thus, Bitcoin is teetering around $31,800 while bears tighten their grip.
Is Bitcoin Price Downtrend Stoppable?
Numerous sell signals on the four-hour chart show that Bitcoin’s slightest resistance path is downward. Realize that a bearish moving average cross led to the formation of a death cross pattern. This pattern occurred when the 50 Simple Moving Average moved below the longer-term 100 SMA. In other words, recovery is mainly out of the picture, and BTC likely to consolidate at a lower price level.
The exact four-hour chart brings to light a bearish Moving Average Convergence Divergence (MACD) indicator. A call to sell Bitcoin appeared on July 12 when the 12-day Exponential Moving Average (EMA) crossed under the 26-day EMA. In addition, the MACD continues to dip under the mean line into the negative territory.
BTC/USD four-hour chart
According to the Relative Strength Index (RSI), bears are very aggressive at writing. It follows a correction from levels near the overbought region to the oversold territory. If this technical picture remains unchanged, we expect Bitcoin to dip some more and perhaps explore areas below $30,000.
A descending parallel channel’s lower boundary support is currently the last line of hope for the bulls. Therefore, holding within this channel is crucial to the resumption of the uptrend. However, if lost, the overhead pressure as panic grips the market. Support at $31,000 may not be dependable, hence the potential of Bitcoin dropping to the region between $29,000 and $28,000.
Bitcoin price intraday levels
Spot rate: $31,790
Trend: Bearish
Volatility: Growing
Support: $31,000
Resistance: $32,000 and $34,000
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