CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$29,800.00
  • ethereum
    ETH$2,029.11
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Crypto Fund
    Home » BTC » Bitcoin Breaks Down to Dec-20 Lows, Here are The Critical Levels to Watch (BTC Price Analysis)

    Bitcoin Breaks Down to Dec-20 Lows, Here are The Critical Levels to Watch (BTC Price Analysis)

    Author: CryptoVizArt

    Last Updated May 12, 2022 @ 13:18

    Bitcoin’s price has been dropping almost vertically over the past couple of days, as it was rejected from the 100-day and 50-day moving averages on multiple occasions.

    Technical Analysis

    By: Edris

    The Daily Chart 

    The $30K demand zone – which was considered a significant level that could reverse the downturn and initiate an uptrend – has also failed and broken to the downside.

    Bitcoin is currently trading around $28K, being massively oversold as indicated by values below 30% in the RSI indicator. In fact, the RSI has reached values last seen during the May 2021 crash. The price could experience a bullish pullback in the short term and retest the broken $30K level.

    However, it’s entirely possible for it to continue on the downside towards the $24K and potentially the $20K level, which could finally mark a mid-term bottom. The 50-day and 100-day moving averages are also creating a bearish crossover, which could lead to bolster the probability of lower prices in the short term.

    btcchart
    Source: TradingView

    The 4-Hour Chart

    On the 4-hour timeframe, the price has broken below the large bearish flag forming over the last few months, validating a bearish continuation scenario.

    The $30K demand zone was providing support for a short period, but it failed immediately after, as a symmetrical triangle pattern formed, signaling the bearish continuation. The downtrend is currently showing signs of exhaustion as the last couple of candles have closed with huge wicks to the downside.

    The RSI is also trying to break above the oversold area – a signal which could lead to a short-term bullish pullback to the broken $30K level. However, the bears are in complete control, and an eventual drop to the $24K level remains probable.

    btcchart2
    Source: TradingView

    Sentiment Analysis

    By Edris

    Bitcoin Open Interest

    Bitcoin’s price has been crashing rapidly over the past couple of weeks and has even broken below the 2021 ($28K) bottom.

    The futures market has certainly played a significant part in this massive drop, as Bitcoin’s open interest had very high levels, even though price was declining from $48K to $37K during April. This slow reduction in Open Interest during an approximately 20% drop was indicating that many stop losses and liquidation targets of long positions were positioned below the $37K, $33K, and ultimately $28K support level.

    Following a price drop below these levels, many of the long positions got liquidated, causing a liquidation cascade that aggravated the selling pressure and lead to a stronger downtrend. However, the Open Interest is still much higher than May 2021 after the crash from the $64K ATH, which shows the futures market is still overheated, even after the recent downtrend.

    This can be interpreted as a bearish signal, because a high Open Interest usually results in high volatility.

    Cryptoquant_chart_btc
    Source: CryptoQuant
    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.


    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

    Cryptocurrency charts by TradingView.
    Tags: Bitcoin (BTC) Price
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Crypto VizArt
    More posts by this author

    Full-time on-chain Data Analyst and Python Programmer. Passionate about Bitcoin and DataVisualization. Contact: Twitter

  • bitcoin
    BTC$29,800.00
  • ethereum
    ETH$2,029.11
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Okay Bears NFT Collection: The Complete Guide

    Okay Bears NFT Collection: The Complete Guide

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Bittrex CBO: Why Bittrex Lost its Lead, Token Sales’ Critical Mistakes, and How to Get Listed (Interview)

    Bittrex CBO: Why Bittrex Lost its Lead, Token Sales’ Critical Mistakes, and How to Get Listed (Interview)

    What is Balancer Protocol? Everything You Need to Know

    What is Balancer Protocol? Everything You Need to Know

    Coinbase Wallet For Beginners: The Complete Guide

    Coinbase Wallet For Beginners: The Complete Guide

    Tether Has No Plans to Go Public: CTO Paolo Ardoino (Exclusive Interview)

    Tether Has No Plans to Go Public: CTO Paolo Ardoino (Exclusive Interview)

    Join Our Newsletter

    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!

    About

    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR

    More Sections

    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis

    Disclaimer

    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!