Title: Bitcoin (BTC) Remains Stuck Under $22,000 Resistance for a Full Week

Aug 26, 2022 09:15 AM ET

By: AnalysisWatch

Bitcoin (BTC) is barely clinging to the bottom of a corrective formation and a small horizontal support area. A breakout below them could be the catalyst for a sharp downward movement.

Since June 18, Bitcoin has been rising inside a parallel uptrend channel. The movement inside the channel led to a local maximum of $25,211 on August 15, but prices could not be sustained.

On August 20, Bitcoin rebounded from the $20,900 horizontal support area and the channel support line and has been mostly rising since then.

RSI is encountering resistance.

Despite the rebound, BTC is still trading in the lower half of the channel. Moreover, the six-hour RSI has been rejected by the 50 line (red icon) and has started to move downward.

Combining this with the fact that channels usually contain corrective movements, it is more likely that the rise is corrective and Bitcoin will eventually break down.

If the price falls below the $20,900 area and the channel support line, it could continue to fall all the way down to $19,000, and potentially even lower.