Bitcoin rejects at 21-day trendline — How low can BTC price go?
Bitcoin (BTC) failed to hold above $30,000 after the July 20 Wall Street open, with one analyst forecasting a return to range lows.
Data from Cointelegraph Markets Pro and TradingView tracked weak BTC price action after a rejection at the 21-day simple moving average (SMA).
Sitting at $30,400, that SMA provided the day’s high for Bitcoin, with the market then retracing its intraday progress entirely.
Reacting to the market action, Michaël van de Poppe, founder and CEO of trading firm Eight, warned that lower levels could well come next.
“Not breaking the crucial area, seems like we’re going to have another sweep of the low for Bitcoin,” he told his Twitter followers.
Popular trader Daan Crypto Trades added that volatility could return thanks to rising open interest.
Open Interest rising sharply near these levels.Likely more volatility ahead for #Bitcoin.Stay safe pic.twitter.com/GqUnaH20Ha
“#Bitcoin Has been finding support on the bottom of the range and 4H 200MA/EMA,” he continued in a further tweet about the four-hour 200-period moving average and exponential moving average.
On-chain monitoring resource Material Indicators meanwhile noted the significance of the 21-day SMA, suggesting that a temporary peak may be in for BTC/USD.
“A hard rejection from technical resistance at the 21-Day Moving Avg and more asks stacking at $31k could indicate things are getting toppy for the moment,” part of the July 20 analysis read.
A prior print of the Binance BTC/USD order book showed a lack of bid liquidity immediately below the $30,000 mark.
Macroeconomic events on July 20 meanwhile focused on strong tech earnings along with a slowdown in United States jobless claims.
Related: Bitcoin traders say ‘get ready’ as BTC price preps 2023 bull
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