As the crypto market heads for a fresh new month, Bitcoin is attempting to breakout out of an ascending parallel channel. After hitting the local high of $25,000 level on August 15, the BTC price took a downturn.
At the time of writing this article, Bitcoin was holding at $20,195. Ethereum was trading at $1,570, as per CoinMarketCap. The top two cryptocurrencies are down by 1.14% in the last 24 hours. BTC lost 5.41% of its value in the last seven days, while ETH lost 3.57%. Analysts believe less demand in return was pulling the crypto price below the immediate resistance mark. The technical outlook has been bearish. Bitcoin is expected to trade near the closest price level if buyers don’t return to the market. The BTC price is expected to remain at the $18,000 – $20,000 price level for the next couple of hours.
Edward Moya, Oanda Senior Market Analyst, says risk aversion is in place and has sent Bitcoin below the $20,000 level. He highlighted the current broad selloff of stocks intensifying, making Bitcoin vulnerable. The analyst said that if S&P declines by 3% over the next few days, the popular digital asset could go back toward the June lows. Rosh Singh, co-founder, and CEO of Quadency, said retail traders’ sentiment is very weak. He outlined that many retail traders are platform focused, as such, a very weak activity. This may indicate a bottom. Singh sees a key support resistance level at $19,800. If this level is breached, BTC could touch $14,000. However, this is unlikely as there are strong fundamentals from the miner side.