- Bitcoin price is showing tight consolidation after a recent 17% drop to $21,283.
- A break above the $20,750 support could lead to a 15% sell-off towards the $17,578 low.
- However, a quick rebound after breaking $20,750 could result in a 12% surge to $23,175.
bitcoin price Strength appears to have returned after the recent market sell-off. This development creates uncertainty Makes investors think whether they should start buying a fall or a shortfall in their investments,
Bitcoin price in suspended state
bitcoin price Strong selling pressure is imminent at $24,664, also known as the midpoint of the $17,578-$31,749 range. After multiple rejections, BTC fell about 20% to test $20,750 for the third time in the past month.
The collapse of the ongoing consolidation can happen in two directions:
- A sweep of $20,750 followed by a quick recovery.
- A break above $20,750 will result in a crash that could revisit June 19 low of $17,578.
Looking ahead to the upcoming Ethereum blockchain merge update on September 15, investors can imagine the first scenario. The merger-led rally has seen many altcoins explode like their bull run.
As the due date approaches, Capital is highly likely to flow from BTC to ETH and other altcoinsThis could allow bitcoin price to aimlessly consolidate around $20,750. Even though, If capital is split between BTC and ETH, a recovery after a quick sweep seems a plausible outcome.
The bounce could see bitcoin price revisit the mid-level resistance level at $22,500. If the buyers continue to press, this recovery is likely to extend to $23,175 and be in sight.
BTC/USDT 4 hour chart
Alternative scenario and its implications
Even though, When bitcoin price ignores upcoming merger and turns the $20,750 support level into a resistance barrier, This would confirm a bearish resurgenceIn such a case, let’s take a look at the higher time frame chart.
The daily outlook for BTC shows it consolidating and crashing since early 2022. The recent crash has pushed the Point of Control (PoC) to $21,177, the highest trading level since June 10th.
This level can break resulting in a 10% drop to around $19,000 Even in this bearish outlook is this level end point of support at the price of bitcoin.
Although unlikely in the next few weeks, there will be a break above the above support area. These support levels – $15,500, $13,500 and $11,900. causes a catastrophic accident for,
BTC/USD 1 day chart
Although these scenarios mentioned above range from mildly bearish to extremely bearish, let’s A look at the bullish outlook for BTCThis narrative will unfold if bitcoin price recovers from its current position at $21,327 Flip the $25,000 barrier into a support floor. Such a move would invalidate the bearish thesis,
This signals that the bulls are back and 45% of the crash in the first half of June is to be reversedIn this case, BTC needs to surpass the previous high of $32,384 and form a new one.
This development would be the first confirmation of a bull rally. In such a case, market participants need to look for lower lows compared to the recent low around $20,750. on being successfulThis step would be purchase and Expect BTC to rally to subsequent resistance levels – $35,000, $45,000 and so on,