Bitcoin Price Prediction: BTC correction far from over amid weakening technical levels

By John Isige
Published February 23, 2021 Updated February 23, 2021
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Bitcoin Price Prediction: BTC correction far from over amid weakening technical levels

By John Isige
Published February 23, 2021 Updated February 23, 2021
  • Bitcoin is facing increasing resistance under the 50 SMA on the 4-hour chart.
  • Technical levels are flipping bearish as Bitcoin fights to sustain the position above $52,000.
  • BTC/USD will resume the uptrend toward $60,000 if the ascending channel’s middle support is reclaimed.

Bitcoin is holding slightly above $52,000 on Tuesday towards the end of the Asian session. The flagship cryptocurrency dipped under $50,000 on Monday and retested support around $46,000. The rejection from the all-time high of $58,400 on Coinbase cut short the mission to hit levels above $60,000.

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At the time of writing, BTC is trading below the ascending parallel trendline midline support. The upside is also limited under the 50 Simple Moving Average on the 4-hour chart. If bulls fail to claim this level as support, Bitcoin’s short-term technical picture will continue to worsen.

Meanwhile, the Moving Average Convergence Divergence (MACD) falls towards the mean line, which is a bearish signal. Besides, the gap made by the MACD line (blue) under the signal line suggests that Bitcoin’s least resistance path is downwards.

On the downside, support at $52,000 might not be healthy but is expected to hold if bulls are to place the bellwether cryptocurrency back on the trajectory toward $60,000. However, if it fails to maintain, the 100 SMA on the 4-hour chart is in line to provide support at $49,000.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Consequently, the ascending parallel channel’s middle boundary will protect Bitcoin from diving under the recently confirmed support at $46,000. If push comes to shove, $44,000 and $40,000 are in place to keep BTC afloat.

Recovery to $60,000 will come into the picture soon if Bitcoin closes the day above the 50 SMA and the channel’s middle level. A break above $60,000 will serve as confirmation that Bitcoin will continue to close in on $100,000.

Bitcoin intraday levels

Spot rate: $51,874

Relative change: -2,164

Percentage change: -4%

Trend: Bearish

Volatility: Growing

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1114 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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