Bitcoin Price Tests Monthly Lows Near $19,500; Is Market Finds Bottom?

Bitcoin price analysis indicates a tug of war between bulls and bears for today. After testing the lows of more than a month near $19,500, the buying interest emerges pushing the price back toward $20,000. The challenges remain intact for BTC buyers.

• Bitcoin price trades with a positive bias on the first trading day of the week.
• A break below the session’s low would continue with the prevailing downside momentum.
• However, reliable support inside a short-term trading channel points to a swift recovery in the price.

Bitcoin price back into positive territory after diving toward $19,500 as sidelined investors found some discount buying opportunity. Additonal buying pressure must offset the neutral MACD signal and ensure that the price recovery toward $20,500 and later $21,000 remains intact.

Bitcoin price looks for trend reversal

Bitcoin price analysis follows our previous week’s expectation and once the important support level breaks, the price dropped fresh monthly lows. The largest cryptocurrency by the market cap tested the supply zone near $25,200 on August 14. The price depreciated nearly 35% since then.

As shown in the chart, BTC hovers in a short-term trading range of $!9,500 and $25,000 since June 17. However, the price breached the demand zone, slipping below $20,000. Investors need further confirmation to put a trade in a particular direction.

The MACD dropped below the mid-line with a neutral bias.

To further confirm the trend we zoomed in on a shorter-term time frame.

The symmetrical triangle formation implies a breakout is imminent. The price fell like a pack of cards indicating the intense selling pressure. However, the price is trading in the green for the past few hours. Thus, scaling back to the height of the fall.

Further, the price faces an upside barricade at the 20-day exponential moving average at $19,855.

The RSI traded above the average line with a neutral bias. Currently, it reads at 44.

Amid the bearish sentiment, a break below $19,700 on the hourly time frame would continue with the downside momentum. In that case, the sellers would collect liquidity further toward $19,500.

Also, read http://U.S. Dollar Skyrockets, Bitcoin, Ethereum Plummet

On the other hand, a spike in the buying order could alter the selling perspective. If the price zoomed above $19,950 on an hourly basis, a quick recovery toward $20,000 can not be ruled out.

The Fear and Gear Index read at 24, fell four points from the previous session, indicating an extreme bearish sentiment.

As of publication time, BTC/USD  reads at $19,824, up 1.34% for the day. The trading volume for the past 24 hours stands at $27.38 billion with more than 6% gains. BTC holds 39% total crypto market dominance.