Whales in defense – Bitcoin (BTC) price remains below $24,000. The cryptocurrency is now trading flush with a major support.
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Whales in defense of the 200-week moving average
Bitcoin price drops as low as $23,238 on Bitfinex today, August 18, 2022. Cryptocurrency trades at $23,403 at the time of writing this article. The markets are currently entitled to a doji.
Bitcoin price manages to hold above the 200-week moving average for now, a key bullish support that sits around $23,060.
According to data provided by Whalemap, the price of the cryptocurrency is benefiting from a whale support at $22,800 – $23,400large buyers having accumulated a large amount of bitcoins in this area.
Towards a bear trap or a bearish rejection for the price of Bitcoin?
Trader Daan Crypto Trades shared a 4-hour chart of the Bitcoin price, which shows yesterday’s drop pushed the price of the cryptocurrency, under a bullish channel in which it had been trading since the beginning of this August.
Losing this short-term uptrend line, Bitcoin price will now face the $23,800-$24,000 area, which will act as a resistance.
If the bulls manage to drive the cryptocurrency price above this zone, Daan Crypto Trades believes that then there would be “ a large bear trap“.
Otherwise, retesting $23,800-$24,000, a “bearish rejection” in Bitcoin price could lead to further declines,” and we’re heading down “.
Other inevitable declines to come in the very short term?
Does the price of Bitcoin have a chance in the short term of returning above $24,000? Analyst Matthew Hyland has shared a comparative chart of cryptocurrency price and daily RSI.
The chart shows that this RSI has moved below a support line. However, in the past, such an event was followed by further declines of this indicator, and the price of Bitcoin followed this movement.
Bitcoin price seems to have lost its bullish momentum. A test of the levels near $24,000 will provide more relevant information on the next moves in the very short term.
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