August 24, 2022 19:47:57
Bitcoin is harnessing support near $21,200 after the coin met with intense selling pressure on August 19. The largest single day-fall since June 13.
Currently, the price is hovering in a short-term trading range of $21,200 and $24,300 since July 17. The formation of multiple Doji candlesticks near the horizontal support level indicates consolidation near the lower level.
A daily close above $21,700 could bring the much-needed acceleration in the prices. BTC tested the horizontal support line twice which resulted in an upswing in the price.
Bitcoin broke above the $25,000 mark briefly on August 15, but bulls could not sustain the gains. More distribution occurred on August 17 as the price dropped below the critical 50-day exponential moving average at $23,350.
The intense selling pressure continued further but it was at its peak on August 19, when BTC booked a loss of 10% in a single day. The fall resulted in meeting the support zone that extends for over a month. Thus, making it a crucial zone to trade.
The above-average volume during the consolidation for the past few sessions shows buyers are participating.
The relative strength index (RSI) bounced back from the oversold zone, indicating a stretched selling condition. It reads at 40. Any uptick in the indicator would echo a bullish tone.
On moving higher, the price would meet the 50-day EMA at $23,000.
The downside is capped near $21,000 for the short term.
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