From going to a 24 hour low of $18,589, Bitcoin had in the last few hours regained significantly and had a ripple effect on the entire crypto space. A majority of top 100 coins are at the moment trading in the upward trajectory thanks to Bitcoin’s 10.33% rise in the last 24 hours.
As of writing, Bitcoin is trading at $20,622, according to CoinMarketCap. On a weekly basis, however, the top crypto asset is still down 15.34% thanks to a major freefall in its price last week.
‘No Clear Bullish Signs’
In this context, bears feel the latest support Bitcoin found at $20,000 level is an indicator of a potential resistance at the same level. They expect another spell of price drop to around $16,000 with the $21,000 level as a resistance range.
Capo, a crypto trader, said on Twitter that the current scenario is a repeat of Bitcoin’s previous resistance of $31,000 to $32,000. He said the main target for Bitcoin could be in the range of $16,000 and $16,250.
Capo said there was noise of Bitcoin bottoming out with small bounce without any bullish signs. This has been the same case over and over, he added.
“$31k-32k was broken and used as resistance. Same is happening with $20k-21k.”
Peter Schiff, chief economist and global strategist at Europac, said Bitcoin going above $20,000 was “just another bull trap.”
“Nothing drops in a straight line. In fact, this slow motion crash has been extremely orderly. No sign yet of any capitulation that typically forms a bear market bottom.”
Can Bitcoin Reclaim 200-Weekly Moving Average?
At the close of last week, Bitcoin stood below the 200-weekly moving average only for the second time in its history. The first time when such a scenario panned out was in March 2020.
Rekt Capital, a crypto trader, said Bitcoin’s prospects could improve only when this important indicator is achieved. The trader said Bitcoin has to reclaim the 200-weekly moving average as support if it were to gain any sort of bullish momentum.
Else, BTC could form its bottoming out accumulation range below the 200-week moving average for the first time ever, he predicted.