Bitcoin rejects at 21-day trendline — How low can BTC price go?

Bitcoin (BTC) failed to hold above $30,000 after the July 20 Wall Street open as one analyst anticipated a return to variety lows.BTC/ USD 1-hour chart. Source: TradingViewBTC price sinks through $30,000 Data from Cointelegraph Markets Pro and TradingView tracked weak BTC price action after a rejection at the 21-day basic moving average (SMA). Sitting at $30,400, that SMA provided the days high for Bitcoin, with the market then backtracking its intraday progress entirely.BTC/ USD 1-day chart with 21SMA.” Not breaking the vital location, appears like were going to have another sweep of the low for Bitcoin,” he told Twitter followers.BTC/ USD annotated chart.

Bitcoin (BTC) failed to hold above $30,000 after the July 20 Wall Street open as one expert forecast a go back to range lows.BTC/ USD 1-hour chart. Source: TradingViewBTC price sinks through $30,000 Data from Cointelegraph Markets Pro and TradingView tracked weak BTC rate action after a rejection at the 21-day basic moving average (SMA). Sitting at $30,400, that SMA provided the days high for Bitcoin, with the marketplace then backtracking its intraday progress entirely.BTC/ USD 1-day chart with 21SMA. Source: TradingViewReacting, Michaël van de Poppe, founder and CEO of trading company Eight, cautioned that lower levels could well follow.” Not breaking the vital location, seems like were going to have another sweep of the low for Bitcoin,” he informed Twitter followers.BTC/ USD annotated chart. Source: Michaël van de Poppe/TwitterPopular trader Daan Crypto Trades added that volatility could return thanks to rising open interest.Open Interest increasing greatly near these levels.Likely more volatility ahead for #Bitcoin. Stay safe pic.twitter.com/GqUnaH20Ha— Daan Crypto Trades (@DaanCrypto) July 20, 2023

“Bitcoin Has been discovering assistance on the bottom of the range and 4H 200MA/EMA,” he continued in an additional Twitter post about the 4-hour 200-period moving average and rapid moving average. Source: Daan Crypto Trades/TwitterOn-chain monitoring resource Material Indicators meanwhile noted the significance of the 21-day SMA, recommending that a momentary peak might be in for BTC/USD. Source: TradingViewCointelegraph formerly wrote about the changing characteristics between BTC cost performance and DXY strength.Magazine: Should you orange tablet children?

Other Questions People Ask

What does it mean when Bitcoin rejects at the 21-day trendline — How low can BTC price go?

A rejection at the 21-day trendline indicates that Bitcoin is struggling to maintain upward momentum, which can signal potential downward price action. Analysts have noted that this trendline, sitting around $30,400, has acted as a resistance level, leading to a retreat below $30,000. If this trend continues, it raises concerns about how low BTC price can go in the near term.

How does the 21-day SMA impact Bitcoin's price movement — How low can BTC price go?

The 21-day simple moving average (SMA) serves as a critical indicator for Bitcoin's price trends, acting as both support and resistance. After failing to break above this level, Bitcoin's price has shown weakness, suggesting that further declines could be imminent. Traders should closely monitor this SMA to gauge potential price movements and assess how low BTC might drop.

What are analysts predicting for Bitcoin after the rejection at the 21-day trendline — How low can BTC price go?

Analysts like Michaël van de Poppe have warned that failing to hold above key levels could lead to another sweep of Bitcoin's lows. This sentiment is echoed by other traders who anticipate increased volatility and potential declines in BTC price. As such, understanding these predictions is crucial for anyone looking to navigate the current market landscape.

What role does open interest play in Bitcoin's price after the rejection at the 21-day trendline — How low can BTC price go?

Rising open interest indicates that more capital is entering the Bitcoin market, which can lead to increased volatility following a rejection at the 21-day trendline. Traders like Daan Crypto Trades have highlighted this as a factor that could influence how low BTC price might go. Monitoring open interest levels can provide insights into potential market movements and help traders make informed decisions.

How can traders prepare for potential declines in Bitcoin after the rejection at the 21-day trendline — How low can BTC price go?

Traders should consider setting stop-loss orders and closely monitoring key support levels to mitigate risks following the rejection at the 21-day trendline. With analysts predicting possible declines, having a clear strategy can help navigate the uncertainty. Staying informed about market trends and adjusting positions accordingly will be essential as Bitcoin's price action unfolds.