Bitcoin (BTC) price holds key level near $20,200; Time to quit?

Bitcoin’s (BTC) price analysis indicates a sideways movement with negative bias. BTC hovers near $20,000 this weekend. The market remained cautious after US Federal Reserve Chairman Jerome Powell’s comments on Friday during the Jackson Hole Summit.

• Bitcoin price is trading cautiously after the consolidation.
• The price fell below $21,000 in a cautious market mood.
• The momentum oscillator turns neutral to bearish.

Bitcoin price is trading cautiously before the next big move

On the daily chart, BTC gave an overview of the bearish “Flag & Pole” pattern in August. 19. The price goes into isolation for a week, without any movement whatsoever.

Furthermore, the price finally breaks the low of the pattern’s breakdown candle and closes below it in August. 26. Along with an above-average volume, as shown in the chart. This combination of price and volume provides a bearish outlook for the largest coin in the near term.

Additionally, more bearishness added to the price as it fell below the 50-day exponential moving average and is holding below that level.

Bitcoin price is in a Distribution phase between August 20 to August 25. Distribution means that large players sell the asset on an impulse move without moving prices too much. It is a sideways/range-bound market activity that occurs after an extended move.

According to this pattern, the expected drop in BTC price can be calculated towards $19,300, if the price closes below ($20,000). To find targets for flag pattern, the Fibonacci extension indicator is used, which gives us more than 75% accurate targets.

The closest support is $19,900, while the closest resistance is around $21,000. The price is more likely to break the support. But if a random price tends to approach the resistance, and we’ve seen some rejection there, then we can sell there as well.Sold on riceg” Opportunity.

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RSI is trading below 50. When the relative strength index is below 50, it generally means that the losses are greater than the gains. While the MACD line crosses below the signal line below zero, indicating a bearish trend.

On the other hand, renewed buying pressure could push the price above the $21,000 level. This would change the bearish outlook. And the price could move above $22,500.

BTC is bearish on all timeframes. Below $19,900 at the close of the hourly time frame, we can put a trade on the sell side.

As of press time, BTC/USD is trading at $20,230, down 0.55% for the day. The 24-hour trading volume held close to $42.96 billion, up 42% according to CoinMarketCap data.