Bitcoin price shows a little weakness as it hovers around $22,000, are the bears back?


BThe price of itcoin since the beginning of July has shown immense strength which has driven the price above $22,000 for the second consecutive time in the past fortnight. As the asset needed to reach $23,000 to secure the mandatory resistance, the bears are stepping up their activity to keep the price limited below $22,100. On the other hand, the bulls seem to be quite exhausted to some extent and therefore a noticeable decline could be approaching quickly!

Will the price of Bitcoin (BTC) fall back below $20,000?

The crypto star for almost a month has been trading in a parallel channel, holding the lower support trendline. After forming a triple bottom at these support levels, BTC price made another attempt to break above $23,000. However, the bears quickly jumped to $22,800 and dragged the price below $22,000.

Therefore, the price of BTC currently appears to be undergoing another minor correction before moving up the next leg!

Given the short-term BTC price movements, the asset looks set for a minor correction. The price after a correction can hold above $21,000 or simply fall below these levels to test $20,800 and rebound quickly, reaching the levels above $22,000. However, the 200-day MA levels which are considered one of the strongest support levels can keep BTC price at $20,500.

Therefore, prices are likely to drop to near $21,200 and trigger a strong rebound quickly. In the event the bears muster immense strength, prices may drop to $20,500 to find the base to flip.

On the other hand, whales appear to have been extremely active over the past couple of days as big BTC trades have surged. According to an on-chain analysis platform, Saniment, whale trades smash the highs as the price broke above $22,600. The value of the Bitcoin transaction jumped to $1 million as the whales are believed to be busy moving their possession.

Collectively, Bitcoin (BTC) prices, despite being lifted by whales and bulls, fear a tentative pullback to instill catapult action above $23,000.

Was this writing helpful to you?


Comments are closed.