Bitcoin Facing $20K, This is What Will Happen if It Breaks Down (BTC Price Analysis)

The bitcoin market has been in a blood bath after registering a new all-time high at the $69K level, followed by a period of moving inside a bearish descending channel. The only question now is if $20K will hold.

Technical Analysis

By Shayan

The Daily Chart

Currently, Bitcoin’s price ranges above the significant support level at $20K, which is also 2017’s all-time high. Based on the market sentiment and a clear divergence between the price and the RSI indicator, a short-term rebound followed by consolidation at this price region is the most expected scenario.

Source: TradingView

Nevertheless, the price would need to break above the $32K level and the 50-day and 100-day moving averages to make a bullish reversal respectable.

The 4-Hour Chart

The market usually has two phases: an expansion phase in which the price moves sharply in either direction without particular corrections and a consolidation/correction phase in which the price usually ranges and manipulates the players.

After a boring mid-term consolidation phase, the price has entered an expansion and experienced a sharp drop to the $20K support level. On the other hand, the bearish momentum has decreased, and Bitcoin has found a short-term bottom at around $20.5K. Considering the divergence between the price and the RSI metric in the 4-hour timeframe and the crucial support level of $20K, a short-term consolidation phase followed by liquidations in the futures market is the most likely scenario for the price. In any case, if the price breaks below $20K, the next support would be found at $17K.

In case of a bullish rebound and a surge, the $29K and $37K price levels will be the primary resistance levels.

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Source: TradingView

Onchain Analysis

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Over the last two years, the most pervasive sentiment in international affairs has been “uncertainty.” Several unstable phases have occurred in the previous two years due to a worldwide pandemic, inflation-related concerns, the Federal…

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