Disclaimer: The conclusions of the following analysis are the sole opinion of the author and should not be considered investment advice.
Bitcoin [BTC] It has recovered decently in its up-channel trajectory since early July. However, the $23.8k-$24.4k resistance range created a reversal and brought down the king coin to confirm a breakout of the pattern.
Ongoing selling pressure has created a bearish position on the EMA ribbon. Reflecting a $20.8k-level reversal trend, buyers can aim for a further close above the $21.6k barrier in the coming sessions.
A potential bearish reversal above this barrier could turn BTC to the upside in the near term.
At press time, BTC was trading at $21,399.
btc daily chart
After facing its December 2020 lows in mid-June, buyers have shown some resilience in the past two months. As a result, BTC jumped above its four-month trendline resistance and flipped it for support.
An ROI of around 32% during this phase has helped BTC jump above its EMA ribbon on the daily time frame.
At the time of writing, BTC was attempting to recover from its recent up-channel breakdown. Should the $20.8k-level maintain its value in investors’ minds, the coin could see a dull phase near its point of control (POC, red). In this case, the likely target for the coin would be in the $22.5k region.
However, sellers will aim to limit bullish gains after a bearish reversal on the ribbon looks to the south of the 20 EMA. Furthermore, selling volume has recently exceeded near-term buying pressure. Any decline below the $20.8k-level could indicate a selloff.
Here, sellers may provoke a pullback towards the $19.8-zone before any revival is expected.
argument
The decline below the balance of the Relative Strength Index (RSI) resonated with the bearish edge. The bulls should extend their rise towards the midline to create a bullish bias in the near term.
Interestingly, the volume oscillator recently declined below the zero mark during a green candlestick. This reading shows a lack of buying volume in the current picture. Nonetheless, ADX forecast a weak directional trend for the coin.
conclusion
Looking at the confluence of the POC and the $20.8k support, BTC buyers can aim to stop the current bleeding. However, a bearish crossover on the EMA ribbon and lack of volume put BTC in a fragile position. The goal will remain what was discussed.
Lastly, investors/traders should keep in mind the macro-economic factors influencing the broader sentiment. This analysis will help them increase their chances of a profitable bet.