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 the rejection at the 21-day trendline indicate for Bitcoin's price?

The rejection at the 21-day trendline suggests that Bitcoin is struggling to maintain upward momentum, particularly after failing to hold above the $30,000 mark. Analysts are warning that this could lead to further declines, potentially sweeping back to previous lows. The 21-day simple moving average (SMA) has proven to be a critical resistance level, indicating that traders should be cautious in the current market environment.

How low can BTC price go after the rejection at the 21-day trendline?

Following the rejection at the 21-day trendline, analysts like Michaël van de Poppe have indicated that Bitcoin could revisit lower price levels. The failure to break through the $30,400 resistance suggests that a downward trend may be imminent. Traders should prepare for potential volatility and consider setting stop-loss orders to mitigate risks as the market reacts to these developments.

What role does open interest play in Bitcoin's price movement after the trendline rejection?

Open interest has been increasing significantly, which could lead to heightened volatility in Bitcoin's price following the rejection at the 21-day trendline. As more traders enter positions, the potential for sharp price movements increases, making it crucial for investors to stay informed. Monitoring open interest can provide insights into market sentiment and help traders anticipate possible price swings.

What support levels should traders watch for Bitcoin after the trendline rejection?

After the rejection at the 21-day trendline, traders should closely monitor support levels around the bottom of the trading range and key moving averages like the 200-period MA/EMA on the 4-hour chart. These levels have historically provided support for Bitcoin, and a failure to hold above them could signal further declines. Keeping an eye on these indicators can help traders make informed decisions in a volatile market.

How does the current Bitcoin price action relate to broader market trends?

The current Bitcoin price action, particularly the rejection at the 21-day trendline, reflects broader market dynamics, including the strength of the DXY (U.S. Dollar Index). As Bitcoin struggles to maintain its position above $30,000, it may be influenced by macroeconomic factors that affect investor sentiment. Understanding these correlations can help traders navigate potential price movements and adjust their strategies accordingly.