Bitcoin Technical Analysis: 20-Day SMA Prevents BTC From Further Growth

Last Updated July 23rd 2021
4 Min Read

Daily Bitcoin BTC Price Analysis
  • Bitcoin price is stuck between two strong levels.
  • The MACD in the 4-hour BTC chart shows sustained bearish momentum.

Bitcoin price managed to flip the $33,000 line from resistance to support around five days back. Where is BTC going to go next? Let’s take a look with technical analysis.

 

20-Day And 20-Bar SMA Push Bitcoin Price Down

Looking at the 1-day chart, we can see that the Bitcoin price has been repeatedly stuck between the $33,000 support and the 20-day SMA ($34,000). The relative strength index (RSI) is hovering around the neutral zone, so it doesn’t look like the bulls or the bears have a clear advantage as of now.

btc/usd daily chart 020221

Image: BTC/USD daily 

Looking at the IOMAP, we can see that the 20-day SMA is a particularly strong resistance barrier. Previously, at this level, 837,500 addresses had purchased 495,000 BTC tokens, If BTC breaks above this, it will reach the $35,000 psychological level.

btc/usd volume chart 020221

Image: IntoTheBlock

Looking at the 4-hour Bitcoin price chart, we can see that the 20-bar SMA has repeatedly managed to push BTC down. Plus, the MACD shows sustained bearish momentum which could hint at a further drop in price.

btc/usd 4-hour chart 020221

Image: BTC/USD 4-hour

 

Ray Dalio: Bitcoin Is An Amazing Accomplishment

Bridgewater Associates’ founder Ray Dalio recently lauded Bitcoin. In a recent newsletter, he praised BTC’s longevity, calling it “an amazing accomplishment.” 

To have invented a new type of money via a system that is programmed into a computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a store-hold of wealth is an amazing accomplishment. 

Dalio said that limited-supply assets like gold and Bitcoin are likely to thrive immensely because of the increased printing of fiat currency by federal reserves, making them less desirable as a store of value. 

While Dalio may have admired Bitcoin now, he has criticized the asset multiple times in the past. In a Twitter thread last year, Dalio expressed concerns about Bitcoin’s volatility, store wealth, and surging government regulations. It appears that Dalio still maintains some of these views. 

In the newsletter, he said that the government’s desire to control money might cause them to impose strict regulations on Bitcoin that could affect its demand if the digital asset becomes very successful. He concluded by saying: 

They (bitcoin) paint a picture that is highly uncertain. That is why to me, Bitcoin looks like a long-duration option on a highly unknown future that I could put an amount of money in that I wouldn’t mind losing about 80% of. 

 

Mark Cuban: Bitcoin Is A Store of Value

Billionaire investor Mark Cuban recently started to increase his Bitcoin exposure and has been very vocal about crypto. Cuban is best known for his role on “Shark Tank” and the Dallas Mavericks owner. In a recent blog post, Cuban affirmed that he sees Bitcoin as a digital store of value. 

This digital store of value isn’t limited to Digital Goods of course. It has long included cryptocurrencies (CryptoAssets is what they should be called, they are rarely used as currency), like Bitcoin, Ethereum and so many others, along with the tokens being created to support De-Fi and other value creating derivatives of CryptoAssets. They all are Stores of Value with market cap leader Bitcoin having a decade plus long history of transactions and wealth generation. 

Cuban further added that digital assets, contrary to what many believe, have intrinsic value. Cuban is not the only famous investor starting to be bullish on BTC. Ray Dalio, another billionaire investor, also recently released a blog post on his thoughts on Bitcoin. He said that he thinks “Bitcoin is one hell of an invention.”

 

Bitcoin Price Is Expected To Reach These Levels

Bitcoin price may drop to the $33,000 support line. A further break could take it to the $31,000 line.

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