The price of bitcoin is now hovering around $20,000 and has not changed significantly over the past few days. The resistance level at $20,600 is proving to be a barrier to the price, which has already been rejected in shorter time frames. In the ensuing hours, it is expected that the price will find it difficult to rise over this mark, and Bitcoin’s downward trend might continue.
Following a recent breakout from another range-bound trend on August 26, bitcoin price is currently exhibiting tight congestion. BTC is already trading below the Point of Control (POC) at $21,535, the highest traded volume level since 2022.
If buyers do not enter the market due to the current scenario in the cryptocurrency markets, another leg down will occur, pushing the price of Bitcoin to the range low of $17,585. Investor purchasing pressure from those trying to acquire BTC at a reduced price may be able to halt this 12% decline.
From an on-chain standpoint this is more likely to happen sooner than later. According to IntoTheBlock’s Global In/Out of the Money (GIOM) model, the resistance cluster at $23,629 is stronger than the immediate support level of $18,925.
The cluster comprises 2.73 million BTC that were bought by around 4.41 million addresses, whereas the former cluster only contains 673,210 addresses holding 421,840 BTC. According to this perspective, a downturn is more likely to happen, especially if selling pressure suddenly increases.
conclusion
The coin has spent the entire week trading between the $20,500 and $19,575 support, and it should break this range to determine the future course of the market. Nearly 300 days have passed since the start of the current Bitcoin bearish, and BTC is currently down 70% from its all-time highs. Unfortunately, it appears that more suffering is yet to come.
