Bitcoin price analysis is anything but bullish right now as the macro factors bring the BTC close to $20,000 price level. The Federal Reserve Chairman Jerome Powell has announced that the Fed will use all the necessary tools to bring down inflation and that in itself is a huge statement. The macro economic factors can play a huge role in the coming months in Bitcoin price analysis.
The equities markets are also reacting sharply to the hawkish comments of the Federal Reserve. The BTC/USD seeks support near the psychological mark of $20k. The upcoming month does not inspire much confidence as the bears look set to keep the price of BTC low. The BTC bulls really need to pull out a rabbit from the hat in order to push the price of BTC above $22,000.
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Bitcoin price movement in the last 24 hours: Ascending channel has been broken
The BTC/USD pair movement shows that the ascending channel is no longer there on the daily charts. The triangle pattern is back in action as the price has broken well below the upper trendline of the triangle pattern. There is hardly any buying above the $22,000 trendline as per Bitcoin price analysis.
The price is unable to break below the 20-day EMA which is lying at $22,200. The Relative Strength Index is near 30 level which means the bears are in charge of the price action. The Bulls are not able to conjure up any momentum either on the daily charts since the weekend will be muted.
BTC/USD 4-hour price chart: Bulls need to defend $20k barrier
There has been a strong bear rally in the BTC/USD pair albeit a muted one. The rally has taken a full week to materialize but the price of BTC has come closer to the $20,000 barrier. The selling can increase in momentum as the thin weekend liquidity will force the bears to target $19,000 next. The low of $17,700 isn’t too far from the current levels.
The MACD indicator is showing negative cross over in the charts which further means more pain for the bulls. The 50-day SMA at $22,400 is also not supportive of the price action. The upper end of the triangle pattern is offering stiff resistance to the pair’s higher target levels beyond $22,000.
Bitcoin price analysis conclusion: Sideways movement with a downward bias
The Bitcoin price analysis says that the pair will face more sideways price action over the weekend. The consolidation will only help the bears as the low volume data will further erode the bull’s confidence. A close below the $20,000 level would mean the end of the small bullish rally.
Hopes of a rising ascending price channel are dashed. The Bitcoin price analysis is firmly in a bearish territory with the lower price target being $20,000. The bears will target $20,100 next in an attempt to lower price channel.
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