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BTC analysis – the price continues sideways at $ 20,000, the purchase is still risky

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BTC more or less stagnates below $ 20,000 over the past day and is currently trading at $ 20,800. Meanwhile, the dominance of the major cryptocurrency continues to decline 44,34%. The altcoins seem to be approaching final phase of the correction.

In the short term, we monitor resistance on $ 21,200 and $ 22,900. The first level represents the short-term point of control and the second represents the retracement of 38.2% of the previous declining leg. Bullish however, volumes are declining, which again heralds ongoing correction structure.

Bitcoin continues to correct

BTC continues to correct. Source: TradingView

BTC continues to correct

Despite the fact that RSI creates a positive divergence, this is not a trend reversal signal. Even if the price continued to rise, it would have to beat the previous sideway structure for a long-term reversal and go over $ 32,000. As we can see, we cannot think of such a scenario yet.

In case bearish scenario In addition to the current $ 19,000 support, we are also monitoring the level 12 000 $. That’s where they start to appear high transaction volumes which are also 20X higher than the average on the last 2 years. It’s the most current bearish scenario that we can identify on the graph.

In the short term, I expect the continuation of the sideway structure of which bullish the signal occurs when the price exceeds the maximum of $ 22,900. Otherwise, we continue to correct to a new minimum.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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