Bitcoin Rejects at 21-Day Trendline How Low Can BTC Price Go?

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Bitcoin (BTC) failed to hold above $30,000 after Wall Street opened on July 20, with one analyst predicting a return to range lows.

BTC/USD 1 hour chart. Source: TradingViewBTC price drops to $30,000

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, this SMA provided the day highs for Bitcoin, with the market then fully retracing its intraday advance.

BTC/USD 1-day chart with 21-day SMA. Source: Trading View

Reacting to the market action, Michal van de Poppe, founder and CEO of trading company Eight, warned that lower levels may well come next.

Not breaking the crucial zone, seems to have another low sweep for Bitcoin, he told his Twitter followers.

BTC/USD annotated chart. Source: Michal van de Poppe/Twitter

Popular trader Daan Crypto Trades added that volatility may return thanks to rising open interest.

Open interest up sharply near these levels.

Likely more volatility ahead for #Bitcoin.

Stay safe pic.twitter.com/GqUnaH20Ha

Daan Crypto Trades (@DaanCrypto) July 20, 2023

#Bitcoin found support on the low of the range and 4H 200MA/EMA, he continued in another tweet on the 200 four-hour moving average and the exponential moving average.

So far, the rebound has yet to be very convincing and the lower timeframes are extremely choppy. $30.5K and $29.5K remain my short-term interest levels. BTC/USD annotated chart. Source: Daan Crypto Trades/Twitter

On-chain monitoring resource Material Indicators meanwhile noted the significance of the 21-day SMA, suggesting that a temporary peak could occur for BTC/USD.

A firm rejection of technical resistance at the 21-day moving average and further asks piling up to $31,000 could signal things are getting toppy for the time being, according to part of the July 20 analysis.

The bulls need to hunker down here and round up the herd if they want a legitimate chance to rush past those sell walls.

An earlier printout of the Binance BTC/USD order book showed a lack of supply liquidity immediately below the $30,000 mark.

BTC/USD order book data for Binance. Source: Material Indicators/TwitterLabour market data drives US dollar higher

Macroeconomic events on July 20, meanwhile, focused on strong tech earnings as well as a slowdown in U.S. jobless claims.

Related:Bitcoin traders say they are preparing as BTC price prepares for 2023 bull market

The impact on the US Dollar was pronounced, with the US Dollar Index (DXY) gaining ground to near 101 for the first time in several days.

So today, Initial Jobless Claims were lower than previous forecasts, so the expected trajectory for the increase in layoffs is slower (lower is good for the USD), popular trader Skew wrote in part of his answer.

1-day chart of the US dollar index. Source: Trading View

Cointelegraph previously wrote about the changing dynamics between BTC price performance and DXY strength.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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