By Franklin Smith
Bitcoin faced rejection around the substantial resistance mark at $20K as the leading crypto started to present bullish moves for potential trend reversals.
BTC hovers at a crucial territory, and price movements in the coming days might determine the mid- and short-term trends.
Technical Analysis
BTC Daily Chart
Recent price actions saw Bitcoin rebounding from the support at $18K to break past the substantial bearish trend-line that emerged when Bitcoin hit the all-time high of $69K in November.
Nevertheless, the crypto encountered rejection near the 50-day MA, and BTC retests the highlighted trend line again – as support this time.
Maintaining the trend line would see Bitcoin heading towards the dynamic resistance at 100d MA, currently near $21K, whereas $24K would represent the massive static hurdle.
Bitcoin has to overcome the highlighted resistance zones to welcome decisive bullish expectations as the marketplace has remained downbeat on the daily chart.
4Hr Timeframe
The four-hour chart shows the price hasn’t surpassed the constricted range of $18K – $20K. Moreover, Bitcoin met another rejection at the range’s higher shackles. This chart has seen a bearish wedge formation emerging. For now, Bitcoin tests the wedge’s lower boundary.
A breakdown would have the market targeting the support at $18K. Furthermore, bears can trigger more downside below this footing.
Meanwhile, the crypto has to break the upper boundary to the upside for bearish wedge invalidation. In the latter scenario, the next obstacle stands near the $22,500 mark.
The Relative Strength Index, which has suggested possible bearish reversals as the price tested the resistance at $20K with the indicator’s overbought signal, hovered beneath 50, indicating bearish momentum for the token. That supports the highlighted bearish scenario.
On-Chain Analysis
Bitcoin remained in a downbeat market and hasn’t shown encouraging reversal signals, leaving market players confused about the bottom.
Meanwhile, Bitcoin has used the 200-day Moving Average as dependable support amidst bullish markets and massive resistance amidst bearish dominance. Generally, zones beyond the 200-day MA represent bullish situations and vice versa.
The market oscillates near the $20K realized cap, indicating that the previous bear market phase prevails. Nevertheless, BTC can plunge further to hit the Delta Cap, near $16K, before printing an eventual price bottom.