Bitcoin Price Analysis: BTC Continues its Struggle Below $21k

An almost perfect start to the previous week saw Bitcoin surge from $20k to as high as $22k. The uptrend continued until the second day of the week as the top coin attempted $24k but failed as it met correction at $23,800.

The $24,000 resistance fell on Wednesday as BTC peaked at $24,280. The advance came to a halt after a negative  announcement that spread panic across the market. It was bouyed by Tesla.

The car manufacturer announced that it sold almost 75% of its bitcoin during the second quarter. This came as a shock to most bitcoiners as  well as other retailers who took pride in the company’s stance on the digital currency.

As a result of the fear, BTC price is currently in a downtrend as it fail to shake off the bearish sentiment. The trend is still ongoing as the coin dipped below $21k a few minutes to the time of writing.

Bitcoin Prices May Continue to Dip

There are several indications that the coin is bound to experience more downtrends in the coming days. One such is the Moving Average Convergence Divergence. A closer look at the indications shows it may have a bearish divergence a few days from now.

For example, the 12-day EMA is dipping and will intercept the 26-day EMA within the next 48 hours. If this happens, we may expect bitcoin to dip as low as $20k. There are frther threat at the $19k support.

Nonetheless, we may expect a change in market sentiment that may alter the above prediction. This means that we may see the top coin resume its uptrend and regain the $22k support. We may expect more price increases from that point on.

Additionally, bitcoin is trading below its pivot point. As a result, the asset is considered a bearish coin with no clear prospect.