Bitcoin 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