BTC Looking For Direction Around $23.5K but Worrying Signs Appear (Bitcoin Price Analysis)

source : cryptopotato.com

https://cryptopotato.com/wp-content/uploads/2022/08/BTCUSDT-Daily-Aug-18-2022-scaled.jpg

Bitcoin’s relief rally from the $20K area seems to be coming to an end, as the $24K resistance level is rejecting the price once again. The 100-day moving average also acts as a resistance near the same level.

Technical Analysis

By Edris

The Daily Chart:

The 50-day moving average, which is currently located around the $22K level, could provide some support and initiate a rally above the $24K resistance level. In this case, a rapid rise towards the $30K supply zone would be more likely.

btc_Chart_18081
Source: TradingView

However, a bullish breakout above the 200-day moving average, which is currently trending around $33K, would be necessary to call the beginning of a new bull market. On the other hand, if the 50-day moving average fails to hold the price, a retest of the $17K-$20K support area would be more probable in the short-term.

The 4-Hour Chart:

On the 4-hour timeframe, the price has been rejected from the higher boundary of the large bearish flag pattern for the fourth time. The RSI indicator signalled a massive bearish divergence between the last few highs, pointing to a potential reversal.

The price has currently broken below the bullish trendline demonstrated on the chart and seems to be pulling back for a retest and eventual continuation towards the lower boundary of the flag. In this case, it would be highly unlikely that the price rebounds from the lower trendline, and a bearish breakout and continuation towards the $17K level and even lower would be the most likely outcome.

btc_chart_18082
Source: TradingView
SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.