NewsletterBitcoin Price Analysis Guide For Ongoing Correction; Watch For These Levels
As mentioned in our previous article, the last three weeks of Bitcoin price action shaped a rising channel pattern. On February 5th, the coin price breakdown from the pattern’s support trendline was a signal for upcoming downfall. Thus, the Bitcoin Price witnessed a three-day losing streak and plunged back to $21500 support. Here’s why this level is important for coin holders.
Key Points:
- The falling Bitcoin price plunged below the 20-day EMA slope
- The $21500 and $20500 stand as strong support in the buyer’s favor
- The intraday trading volume in Bitcoin is $31.4 Billion, indicating a 4.3% gain.
Source-Tradingview
After an explosive rally in January 2023, the Bitcoin daily chart showcased several higher price rejection candles near the $23800 level. These rejection candles signaled the exhaustion of bullish momentum and the need for a correction phase.
As a result, the BTC price has been 6.5% down in the last two days, retesting at the local support zone of $21500. Furthermore, the US SEC’s allegations that Kraken offered unregistered crypto-staking programs contributed to the aggressive downfall, as well.
By the press time, the Bitcoin price trades at $21760, which can continue to wobble above the $21500 support. The daily chart shows a Doji-type candle which means the buyers are preventing further down but are not yet strong enough to resume price recovery.
Also Read: Top Crypto Discord Servers/Groups Worth Joining In 2023
Anyhow, the whole retracement phase is supposed to replenish bullish momentum and support buyers to resume prior recovery. Thus, the coin holders should keep a close eye on the $21500 and $20500 support levels.
The BTC price could witness demand pressure rising at the aforementioned support, holding considerable strength to push it higher. Thus a candle closing above $22500 will hint at the uptrend resumption.
On a contrary note, a breakdown below $20500 will question buyers’ commitment and may cause a further downfall.
Technical indicator
RSI: the daily-RSI slope divided below the midline, indicating a negative sentiment spread for Bitcoin.
EMAs: the 200-day EAM slope moving near the $21500 support enhances the support strength of this level.
Bitcoin Price Intraday Levels
- Spot rate: 21740
- Trend: Bearish
- Volatility: Medium
- Resistance levels- $22500and $23800
- Support levels- $21500 and $20500
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