BTC Price Analysis- Losing Bullish Momentum Hints Reversal from $22000

A bull cycle within the range-bound rally has brought the Bitcoin (BTC) price back above the $20000 mark. Though this recovery rally is expected to reach the $22000-$22600 resistance, the reducing volume indicates the coin price is less likely to breach this resistance.

Key points: 

• The BTC chart shows the traders are accumulating at $18880
• The daily-RSI slope jumps above the neutral zone.
• The intraday trading volume in Bitcoin is $26.39 Billion, indicating a 34.11% gain.

Source-Tradingview

The BTC/USDT technical chart represents a short-term consolidation phase bounded within the $22000 and $18850 barriers. The coin price wobbling between these range’s levels for the past month indicates a lack of commitment on the other side of the parties.

On July 13th, the BTC price showcased its third retest to $18850 support and reverted immediately with a bullish engulfing candle. Thus, the resulting rally displayed five consecutive green candles and surged the market price by 14%.

However as the recovery rally is approaching the overhead resistance of $22600, the daily candle size is reducing and has started showing long wick rejections. This indicates weakness in bullish momentum and a higher possibility for price reversal.

If this theory turns out to be true, the BTC price may revert from the $22000-$22600 supply zone. Thus, the resulting reversal would continue the ongoing consolidation for a few more sessions and could plunge the price back to $18880.

In an unlikely scenario, if coin buyers manage a bullish breakout from the resistance zone, the traders may expect a genuine recovery rally.

Technical Indicator 

RSI indicator: since last month, while the BTC price has followed a lateral path, the daily-RSI slope is constantly rising with near higher highs. Moreover, the indicator slope has just entered bullish territory, indicating the coin price may eventually breach the $22600 resistance.

Bollinger band indicator- the indicator’s band, has surprisingly well-aligned with the range barriers giving them more weightage. Thus, a breakout on either of these should cause a significant impact on BTC’s upcoming rally.

• Resistance level- $22600 and $26000
• Support level- $20000 and $18600