Bitcoin’s [BTC] previous bounce-backs from its vital support range (rectangle, cyan) kept up the near-term recovery hopes alive. But its recent plunge below the daily 20 EMA (red) and 50 EMA (cyan) have reaffirmed a robust selling edge.
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The price action entered into a relatively low liquidity region as it broke into high volatility after the recent pullback. At press time, BTC was trading at $16,818.49, down by 3.65% in the last 24 hours.
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BTC hovered near a vital trendline
Source: TradingView, BTC/USDT
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At the time of writing, the king coin marked a reliable rebound from the $15.9K support. Consequently, the bulls strived to challenge the limitations of the $17.6K ceiling.
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The trendline resistance (white, dashed) could play a crucial role in influencing the coin’s trajectory. Should the bulls inflict a close above this level, BTC could stop the bears from retesting fresher lows.
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In such circumstances, the first major resistance level would lie in the $17.6k zone. The crypto entered a high volatility phase immediately after taking a U-turn from the $21.2K resistance. A sustained position below the trendline resistance could induce a pulldown toward the $15.9K support.
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The bearish cross on the 20/50 EMA further improved the chances of bears maintaining their immediate advantage in the market.
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The Relative Strength Index (RSI) kept plunging while depicting a bearish market. Similarly, the Moving Average Convergence Divergence (MACD) line and the Signal line fell below the zero mark to reveal an increasing bearish edge over the past few sessions.
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A decline in the MVRV ratio and development activity
Source: Santiment
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Post its relatively high levels of development activity in October, the metric marked a steep downtrend over the last month.
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To top it up, the king coin’s 30-day MVRV ratio declined well below the zero mark to depict an edge for the sellers. The last time this ratio fell to such lows was in May 2021.
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Nonetheless, the targets would remain the same as discussed. Also, investors/traders should factor in macro-economical factors affecting the broader sentiment. This analysis will help them increase the chances of a profitable bet.
