Crypto Industry News:
Since last Friday, August 19, there has been an increased amount of liquidations which has had a key impact on the cryptocurrency market. Since then, bitcoin (BTC) has depreciated by more than 10%. The market capitalization of all digital assets fell below the $ 1 trillion mark again.
At the time of writing this article, the rate of the first cryptocurrency is $ 21,000. This means a slight decrease during the day by almost 1%, although bitcoin is losing 12.24% of its value over the last week. Bitcoin's market cap is currently over $406 billion. However, despite the return of bearish dominance and hence the decline in rates, interest in long BTC positions remains at the highest levels in 12 months.
Technical Market Outlook:
The BTC/USD pair has been seen testing the lower channel line around the level of $21,000 as the bears are getting ready do break out below the lower channel line soon. The momentum is still weak and negative on the H4 time frame chart, bounces are shallow and the market is clearly controlled by bears that might accelerate the sell-off and test the swing low seen at the level of $17,600 again. The nearest technical resistance is located at the level of $22,410.
Weekly Pivot Points:
WR3 - $22,059
WR2 - $21,713
WR1 - $21,486
Weekly Pivot - $21,368
WS1 - $21,140
WS2 - $21,022
WS3 - $20,677
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues without any indication of a trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout.
