2023-09-23 00:31:38
© Reuters. Bitcoin could fall to US$20,000, analyst points out
CriptoFácil – Cryptocurrency analyst Akash Girimath predicts a bearish scenario for (BTC), as the lack of volatility is generating ambiguity and doubts among investors. He believes that BTC could stage a slight recovery before the long-term bearish scenario materializes.
Girimath highlights that currently, the price of Bitcoin is around US$26,628, after a 3.13% drop in the last 48 hours, caused by a rejection of the 20-week Exponential Moving Average (EMA) of US$27,290 in September 18th.
According to him, the lack of volatility is another reason why the bearish fractal is not developing as expected.
“In March 2022, a rejection at the 20-day EMA was also observed, followed by a small correction and a sweep of buy-side liquidity. If a similar scenario repeats itself for Bitcoin, a return to the $25,762 range could lead to a sweep of the $27,500 level and buy-side liquidity above that level,” he highlighted.
Forecast for Bitcoin
Girimath points out that invalidation of this short-term bearish fractal will occur if Bitcoin price manages to turn the $29,659 hurdle into support. In this case, BTC could revisit the $31,643 resistance.
“On the daily chart, far from the fractal’s bearish outlook, Bitcoin price appears optimistic after having overcome important obstacles. These resistance levels include the 13-day, 25-day and 30-day Exponential Moving Averages all converging around $26,580,” he said.
However, the analyst points out that a break from the confluence of the EMAs at $26,580 would invalidate any bullish outlook. Therefore, according to the analyst, it is much more likely that Bitcoin will fall than rise.
Finally, Girimath says that investors considering opening long positions based on the $26,580 support should proceed with caution. This is because if the bulls are unable to reduce the downward pressure, BTC price could revisit the $20,431 support level.
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