What the rejection at $19,000 now means for the Bitcoin price

Bitcoin price has breached the $19,000 price zone.
BTC price was rejected from the 8-day exponential moving average
A double scenario is now underway, and key levels have been identified.

Bitcoin price gives into the bearish vice grip as the bulls have abandonded ship near the $19,000 support zone.

Bitcoin price heads south

Bitcoin price has validated last month’s trade idea as the bears have successfully breached the $19,000 barrier. Last month, the 1-1 reward to risk ratio was issued while the Bitcoin price hovered directly over the 200-Week Moving Average (WMA).

Bitcoin price currently auctions at $18,756. Amidst the 26% downtrend (since the summertime highs at $25,211), the bears have shown a persistent uptick in volume. The 8-day Exponential Moving Average rejected the bullish re-entrance of the $20,000 barrier and catalyzed the final 5% decline into the current market value.

August Bearish Trade Thesis

Bitcoin price now has a double scenario in play. More declines could occur on the bearish side of the coin, targeting the June 18 swing low at $17,622. If market conditions persist, the Bitcoin price is already on its way toward its target. Such a move would result in an additional 7% decline from the current market value.

On the contrary, the massive liquidity breach could give power to institutional and smart money operatives looking to trap retail bears. A hurdle over the $20,200 zone could induce a recovery rally toward the 200-Week Moving Average at $23,178, resulting in a 23% increase in the Bitcoin price.

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team

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