The past couple of hours saw Bitcoin crashing towards the $20.8K lows. That had the bellwether crypto hitting the lowest zones in about two years. Meanwhile, the latest bearish movements saw the crypto market losing the trillion-dollar cap status, with this metric hovering around $928 billion. Nevertheless, the market remains weak, and prices might fall further.
BTC 1Hr Timeframe
Bitcoin might present an attractive ‘buy’ opportunity near $20K, though the market structure remained highly bearish in the short term. A 25% price drop by BTC in 36hrs remains somewhat uncommon, and it sometimes sees Bitcoin printing a local bottom before grinding higher.
Analysts plotted FIB levels according to the price move between $31.5K and $24/9K, and BTC nearly tested a 61.8% extension zone as support. The $23K zone served as a support level for some time but selling momentum overwhelmed it.
The crypto might revisit it in the coming hours and potentially form a concealed bearish divergence soon. Its confluence with a 23.6% extension presents this zone as a challenging resistance and might provide a ‘short’ opportunity.
Reasoning
A bullish divergence had Bitcoin reviving from $20.8K. Nevertheless, a concealed bearish divagation might emerge soon. Hidden deviations show a continuation of the prior trend. Thus BTC might see further downward actions.
Also, the Awesome Oscillator stayed well beneath the zero mark, showing intensified bearish strength. Meanwhile, the on-balance volume noted a quick southward dip. Therefore, sellers remain in control of the marketplace.
One factor behind BTC’s new plunge is the pausing of swaps, transfers, and withdrawals by Celsius Network. The DeFi platform has triggered mistrust within the marketplace after announcing service disruptions. Also, macroeconomic factors add downside pressure.
For instance, the crypto market resorted to swift declines following US inflation data on Friday. Bitcoin’s upside path remains plagued with several resistances. The bellwether crypto will likely drop before rethinking upside revivals. A decisive closing beyond $24K can support near-term uptrends.
Final Thought
Sellers have dominated the crypto world, and Bitcoin revisiting the $23K zone could mean a shorting opportunity. The southbound move following monthly range consolidation might see BTC revising the $20 zone again.
