BTC faces huge opposition, rejection could result in $ 18K retest (Bitcoin price analysis)

Over the past week, Bitcoin had swung around the $ 20,000 confluence zone, showing no real signs of a possible upswing: low volatility, lack of demand and choppy price action. After testing the $ 18K primary demand zone, the price temporarily declined toward the $ 22K resistance level, but was quickly rejected.

Technical analysis

Technical Analysis of Shayan

The daily chart

The following chart shows that BTC had formed a continuation correction pattern after the sharp decline. If the price succeeds in breaking to the bullish side, a rally will be likely, against $ 30K – the first major resistance.

From the bullish side, the $ 30K level and 50-day and 100-day moving averages are the main barriers blocking Bitcoin’s potential to reverse the negative trend and start the next significant bull run.

In contrast, if the price breaks to the downside – a cascade to the $ 15-16K region will be the most likely scenario. Meanwhile, the RSI indicator also indicates the relative equilibrium between the bulls and the bears, which contributes to the indecisive situation.

4-hour chart

Bitcoin has fallen into a sharply declining channel since April. After testing the lower limit for the third time, the price has entered a mid-term consolidation stage and forms a bearish wedge, which is a continuation pattern.

The price recently found support at the lower trend line (marked purple) and then rose towards the channel’s upper limit and the bearish trend’s upper trend line.

If the trend line rejects the price, a new short-term fall towards the $ 18K mark is likely. In contrast, if the price breaks above the declining trend line and the wedge pattern to the upside, Bitcoin’s next target will be the significant resistance level of $ 30,000.

Given the uncertainty of the general financial markets and the current bearish sentiment in the crypto market, a new bearish stage is the most likely scenario.

Analysis on the chain

Onchain analysis of: Edris

Bitcoin Miners Reserve

Bitcoin’s price has consolidated at the $ 20K level in recent weeks. The Miners Reserve chart shows that the miners have distributed their funds.

According to data aggregator CryptoQuant, miners have been unloading the most significant amount of Bitcoin since January 2021 over the past few weeks. They are under a lot of pressure due to the declining profitability.

These miners were forced to sell Bitcoin at market price to minimize losses and reduce overall risk. Consequently, if this situation continues, the sales pressure caused by forced sellers may push the price even lower in the short term, and fall well below the $ 20K mark.