$29,000 Standing in the Way for Bitcoin as it Heads Down to 20,000, After $30,000 Breaks
Bitcoin was leading the cryptocurrency market during the bullish momentum in the first four months of this year. But, the climb in Bitcoin had stopped by the middle of April, while some other cryptos, such as ETHEREUM, kept the bullish momentum going for another month, until the middle of May.
BTC/USD Live Chart
Bitcoin Analysis – Daily Chart
That was the first sign that buyers were heading towards some tough times ahead, and it wasn’t too long before the big Bitcoin reversal came in May. This crypto tumbled to exactly $30,000 during that crash, but this big round level held as support for the cryptocurrency in the first wave of selling.
The crypto crackdown in China initially caused this market to crash in May, and it has been keeping the sentiment quite bearish for cryptocurrencies. Bitcoin, bounced off the $30,000 level, climbing above $40,000, but a resistance zone formed above $41,000, which stopped the bounces during May and June. This showed that Bitcoin wasn’t going to resume its bullish trend anytime soon.
Bitcoin breaking level after level as it keeps sliding lower
Then, the second crash came in June, and the $30,000 was pierced, as the price fell to $29,000. But, it bounced off that level and closed above $31,000, so there was no official break. However, the 50 SMA (yellow) kept pushing the price down after every retrace higher, so BTC/USD was making lower highs, as my colleague Rowan highlighted earlier today – this was another strong bearish signal.
Bitcoin Analysis – H4 Chart
Today, the price has slipped below the $30,000 level and it seems like it will stay below this. Now that this level has been broken, sellers will be targeting the $20,000 level. June’s low at $29,000 is standing in the way, but considering the strong bearish momentum, this last level is in danger. If $29,000 goes, then the $30,000 level will offer some decent resistance, which would make it a good level to sell pullbacks in Bitcoin. But, we have to wait and see where Bitcoin ends today.
Bitcoin reversing down lower every time, after every retrace up
On the H4 timeframe chart above, BITCOIN ended up above all moving averages in June, then the moving averages turned into resistance, as the highs were getting lower. First it was the 200 SMA (purple), then the 100 SMA (green), followed by the 50 SMA (yellow). Now, the 20 SMA (gray) is pushing it down. So, the lows keep getting lower and now only $29,000 stands in the way for $20,000.
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