Should you sell Bitcoin [BTC]? Here’s what its recovery prospects are like

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

After an expected rectangle bottom breakdown, Bitcoin [BTC] lost the vital $28K support while finding resting grounds near $19.2K. While the recent movements affirmed a sideways market, sellers have kept the coin below the daily EMA ribbons.

Paying heed to a host of barriers at the $21K level, BTC could continue its lagging squeeze in the coming days. A close below the current pattern would open doorways for potential shorting opportunities.

At press time, BTC was trading at $20,423, up by 1.97% in the last 24 hours.

Source: TradingView, BTC/USD

Maintaining a conservative standpoint, BTC could see a continued tight phase in the $19.2K-$21K range in the coming sessions. Over the last three weeks, the king coin has formed a bearish pennant-like setup in the daily timeframe. However, the coin has been struggling to break the chains of its 20 EMA for nearly a month now.

As the upper trendline of the pennant coincided with the 20 EMA level, the $21K level could impede buying efforts. Meanwhile, the price action squeezed within the pennant while preparing for a likely volatile move.

Any close below the pattern would make room for a shorting opportunity. In this case, the take-profit levels would lie in the $17.1K zone. But if the BTC HODLers are keen on protecting the $18.9K-$19.2K range, the coin would see an extended sideways market.

In an unlikely case of a bearish invalidation, a close above the pattern could aid the buyers in retesting the three-month trendline resistance (white, dashed).

Source: TradingView, BTC/USD

The Relative Strength Index (RSI)’s position below the midline has resonated with