The price of bitcoin has been losing its strength in the last 24 hours. The coin is facing rejection at the $21,000 mark, causing the bulls to lose their momentum.
Over the past 24 hours, the coin has lost 1% of its value, indicating that at the moment, BTC is consolidating on its charts.
The past week has been positive for the price of bitcoin; However, the coin has lost most of its gains in the previous trading session. Bitcoin may pick up momentum again provided it clears its upper resistance mark in the upcoming trading sessions.
The technical outlook of the coin has indicated that the price of the coin is still hovering within the bullish price zone.
Demand for the coin may have fallen, but buying strength remains in positive territory at the time of writing.
If demand starts to rise again, BTC may be able to trade above its immediate resistance mark. At the moment, BTC’s local support lines were at $20,000 and then at $19,600. A fall below $19,600 would make it very difficult for the bulls to capture the charts again soon.
Bitcoin Price Analysis: One Day Chart
At the time of writing, BTC is trading at $20,300. The coin has struggled to move past the $21,000 price mark which is why the bulls continued to lose their strength.
BTC may again retest the positive price action if the coin crosses the $20,800 mark and then crosses above $21,000 and trades there for the next trading session.
The coin has formed a bearish reversal flag pattern, implying a further extension of the downtrend. In that case, BTC’s first stop would be $20,000. After which bitcoin will trade at $19,600.
The bears will take over once the coin touches the price level of $19,600. The volume of bitcoin traded fell in the previous session, indicating that buying pressure had also eased.
The buying power in the altcoin has increased over the past few days, but as the bulls slow down, the demand for the coin has fallen.
Despite the decline, buying power was still in positive territory. The relative strength index fell slightly below the 60-mark, even as the reading showed buyers outnumbered sellers on the chart.
Bitcoin price was above the 20-SMA, indicating that buyers were driving the price momentum in the market.
Other indicators have also pointed out that buyers have not exited the market completely, indicating that the price of bitcoin may once again rise.
Moving average convergence divergence also suggests the strength of price momentum and direction. MACD was positive with green signal bars indicating buy signals for the coin.
Bollinger Bands represent price volatility and volatility. The bands diverged, pointing to the possibility of price volatility.