Bitcoin Price Analysis: BTC Sees Selling Congestion Above $21k. A Cause for Fear?

Bitcoin has been on an uptrend for the majority of the last fourteen days. As a result, the asset recorded notable gains and reclaimed key levels. Last week, it flipped the $20k resistance for the first time in more than 30 days.

During the previous intraday session, it attained another milestone. It broke the $21k resistance and is currently trading above the mark. The flip of the highlighted barrier is on that garnered a lot of celebration from Hodlers.

The bulls were also grinning hard as REKT long positions were worth a meager $60 million compared to almost $200 million from short positions. However, the liquidated fund is down by more than 60% over the last 24 hours.

One reason for this massive decline is the decrease in volatility across the crypto market. The apex coin is not exempted from the current state of the industry as we observed a massive selling congestion at $21k.

The state of the apex coin is causing a mixed reaction from traders. For example, one Twitter user said that he starting to see bearish signs on the charts and claimed the local will be around $21,400 and $21,500.

Others switched to a shorter timeframe to draw a bull flag. It is safe to conclude that there are conflicting opinions as to how prices will perform in the coming days. Is this a cause for fear?

Bitcoin Could Face Massive Retracement

A Twitter user posted this chart that could strike fear in the hearts of many. The image below shows the BTC/USD pair in some sort of pattern. He used Fibonacci sequence to decode the next low.

Image

The theory of this sequence is the gradual increase of figures from lowest to highest or vice versa. Following the trend, we may conclude that bitcoin could rebound between $16k and $12k.

Recall a previous outlook pointed to such an event unfolding. After highlighting the key levels to watch, it stated that BTC’s low is likely between $16,000 and $14,000. Let’s see how prices play out in the coming days. There is other good news.

Averted Bearish Convergence

A look at the Moving Average Convergence showed that the most recent increase bitcoin had helped averted an impending disaster. The 12-day EMA was on a downtrend and threatened to intercept its counterpart.

The move would signal the start of a massive downtrend. However, the image head showed that the metric is back on the rise and the bearish convergence may not take play within the next three days.

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