Bitcoin price crashed during major selloff, this could be the next stop
Bitcoin price plunged almost 8% in the last day due to the high consumer price index.
The prices of most altcoins fell on their respective charts after the CPI showed a 0.1% increase in August, which has now taken the unadjusted value to 8.3%.
The annual increase was expected to be 8.1%. In the last 24 hours, Bitcoin recorded a loss of 4%.
Given that the market is undergoing an extended selloff, a further drop in BTC’s value can be expected. The technical outlook for the coin was bearish as buyers exited the market at the time of writing.
The Bitcoin price has been struggling with $18,900 for the past month, but it has managed to break through this price level in the past week.
Bitcoin has surged past the $22,000 level. The latest blow from the CPI report has pushed the coin down.
Indicators have chosen to side with the bears given how sellers dominate the market at press time. The global cryptocurrency market capitalization currently stands at $1.04 trillion, with a negative change of 2.5% in the last 24 hours.
Bitcoin Price Analysis: One Day Chart
BTC was trading at $20,200 at the time of writing. The drop from the $22,000 mark was sudden due to the unexpected number from the CPI report.
Immediate resistance for the Bitcoin price was at the $21,000 mark. If BTC manages to topple this level, it could return to trading above the $22,000 price mark.
Local support for BTC was at $19,200. However, with the intense selling, the coin may fall and is trading near the $18,900 support line.
The amount of Bitcoin traded in the last session grew slightly, indicating that there was an influx of buying power.
Technical analysis
BTC has registered a sharp drop in buying power over the past 24 hours. This drop in buyers has pushed the price further close to the nearest support line.
The Relative Strength Index was seen below the halfway line, indicating strong selling strength and thus bearishness.
Over the past few trading sessions, the RSI has noted a small uptick, indicating that the buying power increased slightly.
Bitcoin price just broke through the 20-SMA line, which was also a sign that sellers were driving price momentum in the market.
BTC showed a buy signal despite the market registering a small buy signal after the buying power showed a strengthening.
The Awesome Oscillator shows the overall market strength and direction of the price. AO climbed above the halfway line, indicating that buyers could trade on this price action.
Even if buyers act on the buy signal, the price of the asset is unlikely to see an upward movement. The Directional Movement Index signals price direction and momentum.
DMI was negative when -DI (orange) line was above +DI (blue) line. The average directional index (red) was above the 20 mark, which means that the current price direction has strengthened.
