Bitcoin is testing support at the 20-period moving average.
A light negative slope may be seen applying to the Bollinger Bands.
There is uncertainty over whether Bitcoin will hold above the support level.
The price of Bitcoin was being watched for some days now on account of being at the worth of around $83,000, with traders watching its movement. The 12-hour chart opposes support, being the 20-period moving average (SMA) at $83,024.76, which seems to be under slight test. It has some indication of moving downwards. The Bollinger Bands also reveal that the volatility may be increasing, since presently, price action is squeezed between the upper and lower bands. The price action around the 20-period moving average suggests that a break below may drive Bitcoin into a further decline, while a hold above it could indicate a potential reversal to the upside.
https://twitter.com/cantonmeow/status/1901809716285805010
Bollinger Bands Show Volatility, But Support Remains in Play
The chart has Bitcoin literally floating in the middle of the Bollinger Bands, at an upper band valuation of $86,215.28 and at a lower band valuation of $79,834.29. The price reached a high of $84,005.85 on March 18, but aggressive selling pressure in the past few days has pushed it closer to the lower band.
Although the price is going down, the Bollinger Bands are still wide, implying volatility could soon be upon us. The 20-period moving average has offered some support in the past, and whether we hold above it in the near term will be crucial in determining where to next for Bitcoin.
Bearish Sentiments Continue: Will Support Hold at $83,000?
The overall price action in the chart indicates bearish sentiments within the market, which has seen Bitcoin persistently tested in keeping its momentum above the key support levels. Profit taking has carried the price down from that early March high of $86,000, raising the concerns regarding the 20-period moving average possibly not holding as support.
The pressure on the downside is evident because Bitcoin seems unable to breach upside above $84,000 resistance. Trading lower than $83,000 implies an ongoing bearish trend unless buyers regain strength and break higher. Should the support at $83,000 give way, then Bitcoin may further drop toward the lower Bollinger band at $79,834.29.
What Next for Bitcoin: A Possible Break or Consolidation?
Bitcoin seems to have some uncertainty regarding its next move. If ever it holds at the 20-period moving average and rises back above the $84,000 mark, Bitcoin would then be likely in a position to recover and target new highs above $86,000.
Conversely, if weak price action continues below $83,000, further downside could be on the cards, with the next major support being the lower Bollinger Band at $79,834.29. The market is now in a holding mode, traders are waiting for some clear inclination. The next few days may prove to be everything as they would either see Bitcoin persist into the ditches again or make a strong comeback after a long consolidation. Read MoreNews, Bitcoin News, Blockchain News, DeFi News, NewsNow, Price Analysis, BTC, Crypto market, cryptocurrency
Cryptonewsland – Your Daily Crypto News
