Bitcoin rejects at trendline — How low can price go?

Bitcoin rejects at trendline — How low can price go?

The Blockchain Industry: A Closer Look at Recent Developments

Bitcoin (BTC) has experienced a decline below the $30,000 mark after the Wall Street open on July 20th. This drop comes as the cryptocurrency faced rejection at the 21-day simple moving average (SMA). BTC’s price retraced its intraday progress entirely, reaching $30,400 at its highest point.

BTC/USD 1-hour chart BTC/USD 1-hour chart. Source: TradingView

Michaël van de Poppe, the founder and CEO of trading firm Eight, warned that Bitcoin might experience lower levels in the near future. He suggested that a sweep of the low for Bitcoin is possible if it fails to break the crucial area of resistance.

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

Another trader, Daan Crypto Trades, mentioned that volatility could increase due to rising open interest. He highlighted the support Bitcoin has found at the bottom of the range and the four-hour 200-period moving average and exponential moving average. However, he also noted that the bounce has not been convincing yet, and the lower timeframes are extremely choppy. For the short term, he identified $30.5K and $29.5K as levels of interest.

BTC/USD annotated chart BTC/USD annotated chart. Source: Daan Crypto Trades/Twitter

On-chain monitoring resource Material Indicators highlighted the significance of the 21-day SMA, suggesting that a temporary peak might be in for BTC/USD. They mentioned that a hard rejection from technical resistance at the 21-Day Moving Average and increasing asks at $31k could indicate a potential slowdown. Bulls would need to regroup and gather strength to overcome the selling pressure.

BTC/USD order book data for Binance BTC/USD order book data for Binance. Source: Material Indicators/Twitter

The Binance BTC/USD order book showed a lack of bid liquidity just below the $30,000 mark, indicating a potential resistance level.

The Influence of Labor Market Data on the U.S. Dollar

On July 20th, macroeconomic events focused on strong tech earnings and a slowdown in jobless claims in the United States. These events had a pronounced impact on the U.S. dollar, with the U.S. Dollar Index (DXY) gaining ground, reaching near 101 for the first time in several days.

U.S. dollar index 1-day chart U.S. dollar index 1-day chart. Source: TradingView

The decrease in jobless claims indicated a slower trajectory for increasing layoffs, which is seen as positive for the U.S. dollar. This event follows a changing dynamic between BTC price performance and the strength of the U.S. Dollar Index, as previously discussed.


The recent developments in the blockchain industry, particularly in the Bitcoin market, have showcased the significance of technical indicators and market sentiment. Bitcoin’s failure to hold above $30,000 and the rejection at the 21-day SMA have raised concerns about further price declines. Traders and analysts are closely monitoring support levels and open interest to gauge potential volatility.

Additionally, macroeconomic events, such as strong tech earnings and a slowdown in jobless claims, have influenced the U.S. dollar’s performance. The U.S. Dollar Index has gained ground, reflecting positive market sentiment. These interconnected dynamics between cryptocurrencies and traditional financial indicators continue to shape the blockchain industry.

As the industry evolves, it is crucial for market participants to stay informed and adapt to the changing landscape. By understanding the technical indicators, market sentiment, and macroeconomic events, stakeholders can make more informed decisions and navigate the blockchain industry with confidence.