Bitcoin price is back near $19K, why is it sideways today?
Investors believed that cryptocurrency is a good hedge against inflation, but now there is only despair as the crypto market is witnessing selling pressure. In 2020, the crypto market recorded more falls in value than increases in value. This is because of the market leader Bitcoin as the bears don’t want to lose $20K.
Thus, the total crypto market capitalization fell by 2.30% overnight, recorded at $919.58 billion. It continues to slip below $1 trillion. As a result, most cryptocurrencies including BTC value fell over 60% this year. Still, buyers continue to try to prevent overselling, but this seems somewhat impossible.
Bitcoin (BTC) price bounces back towards the $19K support level after a sudden price recovery on the hourly chart. The price of BTC has been range-bound since mid-September. The bears have set a resistance level at $20,350 to $20,450. On the other hand, bull buyers maintain their presence near the $18,400 support level.
On the hourly price chart, BTC price is shifting to higher lower levels below previous highs. A more uniform pattern could give more selling pressure in the market. However, buyers are keeping bitcoin prices above $19K, which acts as a key support for the month.
In the middle of the sideways range, the price of the most popular cryptocurrency – Bitcoin stands at $19,172 at the time of writing. During intraday trading, the observation turned sideways as trading volume fell 34% to $32.29 billion last night. The nature of bitcoin is volatile and it now appears to be sideways, meaning no major moves are ever going to happen.
The middle band of the Bollinger Bands indicator has been a red volatility zone for the past few days. When buyers struggle at this level, it acts as an immediate resistance zone for the week. Furthermore, the lower band of the BB indicator provides the price pump so far.
Undoubtedly, the bulls are trying for a price recovery, but the RSI indicator is attracting a low-high pattern in the context of the daily price chart. Now it is below the semi-line.
Conclusion
During the intraday trading, the price of bitcoin faced a fall. The bearish trend and intermediate band of the Bollinger Bands are putting selling pressure on the BTC price, so the bears are aiming to retest $19K soon. However, the nature of bitcoin is volatile and it now appears to be sideways, which means there could be a lot of momentum going forward.
Resistance level – $20,000 and $22,500
Support Level – $19,000 and $18,000
Disclaimer
The views and opinions expressed by the author or any person mentioned in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He has been a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralization, understanding the true potential of the blockchain.
