Bitcoin drops to 21K after a huge sell-off: What to expect?

Bitcoin price analysis for August 20, 2022, comes on a bearish note for the world’s biggest cryptocurrency as the token has fallen by 7.32% in the last 24 hours and additional price drops can also be expected as well. Moreover, it is also a fact that the nearest resistance for the token stands at the $20K price level which has been holding for a considerable amount of time. Interestingly, the nearest resistance for the token stands at the $25K price level which the token was able to breach but wasn’t able to hold.

As noted in our BTC price analysis for August 19, 2022, the Bitcoin token’s dominance has dropped considerably in the last few days which suggests that the bears continue to drive the prices of the leading cryptocurrency.

The data from CoinMarketCap shows that the trading volume of the token surged by 52.49% in the last 24 hours, followed by a 7.32% drop in the market cap. Moreover, the Volume / Market Cap has a value of 0.09792, while the Market Dominance dropped to 39.76%.

The daily candle for the token opened at a price of $20834 and reached a daily high of $21212. On the other hand, the daily low for Bitcoin stands at a price of $20792. The price of 1 Bitcoin at the time of writing is $21126.

Bitcoin price analysis for August 20 on the daily chart

Bitcoin price analysis for August 20, 2022, will consider the data from the daily chart below with three major indicators integrated into it.

Source: TradingView

The RSI indicator reads a value below 36 as the bears remain in control of the Bitcoin price action.

The MACD line has broken below the signal line and the intensity of the bearish divergence continues to surge.

The price action for Bitcoin is retesting the lower end of the Bollinger Bands as selling pressure is very high.

Conclusion

Bitcoin price analysis for August 20, 2022, ends on a bearish note for BTC as chances of retesting $20K are very high.