Bitcoin price continues to plummet after breaking the $20,000 mark. Bitcoin has barely moved in the past 24 hours.
BTC lost nearly 16% of its value in the past week. BTC quickly attempted to recover from the $19,000 price mark on its charts.
However, the bulls were unable to defend this price marker. The nearest support line for Bitcoin price is $18,000. Bitcoin has been in a sustained downtrend over the past few months.
The technical outlook for the coin indicates an increase in bearish power.
On the one-day chart, selling pressure continues to outpace buying. The $20,000 price mark will prove to be a strong resistance level.
$20,000 is a key resistance level for Bitcoin price. The increase in purchasing power may provide some temporary relief for the coin.
The global cryptocurrency market capitalization today is $962 billion, of which 0.6% positive Changes in the past 24 hours.
Bitcoin Price Analysis: One Day Chart
At the time of writing, BTC is trading at $18,800. A few sessions before that, Bitcoin was trading above $19,000. The coin has overhead resistance at $20,000, which BTC has struggled to surpass over the past few days.
The sharp drop in purchasing power led to a further rapid plunge in BTC. The bearish thesis could be invalidated if BTC rises above the $20,000 price level.
On the other hand, falling demand for the asset could even drag Bitcoin price to $17,400. A break below this price mark could take the asset to $14,000.
Bitcoin volumes dropped in the last trading session, suggesting sellers took over at the time of writing.
The decline in buyers has led to further declines in the price of Bitcoin. Just a week ago, purchasing power dropped sharply, and since then, BTC has continued to depreciate on its charts.
The RSI is below the half line, which means there are more sellers than buyers.
Bitcoin price fell below the 20-SMA line, indicating a drop in demand. It also means that at the time of writing, sellers are driving price momentum in the market.
Other technical indicators point to bearish price signals. Moving Average Convergence Divergence measures market momentum and the overall price direction of the market.
The MACD underwent a bearish crossover and then showed a red histogram, which was a sell signal for the coin.
On the other hand, Chaikin money flow remains positive, rising above the half line. This indicator determines the amount of capital inflows and outflows.
At the time of writing, the CMF shows an increase in capital inflows.