Bitcoin price could drop below $21,000 as the bear embrace hardens. The recent price action saw a high of $25,135 and a low of $23,243. The short term target of the descending price action is a drop towards $21,000-$20,000.
Bitcoin Bulls Lose Steam
On August 18th, Bitcoin, the leading digital asset, is struggling to hold above $23,500 as it tries to break into the upward trend it has been in for the past two months.
The dominance of the bulls on the daily bar chart is clearly decreasing, and they will soon need to show more persistence for the price to continue rising.
bitcoinBTC/USD trades at $23k. Source: TradingView
In just one week, the Crypto Market Fear and Greed Index fell from 47 to 30, and in just one day, it went from 41 to 30.
This week’s additional selling pressure could either reverse the uptrend or put it in an even more vulnerable position.
Additionally, the MVRV 7-day Detrend Oscillator has developed a negative divergence pattern in response to the recent bitcoin price action. This means that BTC price could decline below $21,000. By removing long-term price noise, applying a detrend filter to price trends makes it easier to spot market bottoms and peaks.
Bitcoin (BTC) MVRV 7D Detrend Filter. Source: CryptoQuant
Long-term bitcoin prices have been falling, especially since November. However, the prices have increased in the last one month. The descending channel on the daily time frame is showing that BTC price was ready to break the channel but failed to do so due to the psychological resistance level of $25,000.
According to crypto trading analyst, Michael van de Pope, bitcoin’s ‘trend remains upward on the higher time frame.’ pope Having said,
“Critical to break back $23.7K. If a move to $24K takes place, a flip to $23.7K is triggered for long. Trend on higher time frame remains uptrend. Still in next weeks Expect $28-30K.”
Bitcoin price target. Source: Michaël van de Poppe
Bitcoin is currently trading at $449 billion, up 0.10% over the past 24 hours, but down 5.03% over the past week, according to data from TradingView.
Mining difficulty increases in the midst of a downtrend
The most recent network change resulted in a 0.63% increase in bitcoin mining difficulty.
Source: The Block Crypto Data.
A change was made, and BTC.com updated its website on Thursday to reflect this. Data from Block Research shows that the network’s hash rate has increased by about 1.5% since the last update on August 4.
Since the crypto market collapse of May, bitcoin’s difficulty has waned substantially. The most recent modest uptick comes after a 1.74 per cent rise on August 4.
Featured image from Pixabay, Chart from TradingView.com, Cryptoquant, and The Block