Bitcoin Price Analysis Hints A Potential Bull Trap At $22500, Keep Holding?
The new year recovery in the Bitcoin price takes a halt after the breakout of $22500 resistance. Though this newly reclaimed level should have offered coin buyers a suitable footing to lead further rallies, the coin price is struggling to sustain at higher levels. The BTC price getting rejection at the $23000 mark indicates an upcoming correction phase.
Key points:
- Multiple rejection candles at $23000 suggest may the BTC price struggle to sustain the recent breakout
- A bullish crossover between the 50 and 100 may assist traders in keeping bullish sentiment intact.
- The intraday trading volume in Bitcoin is $16.2 Billion, indicating a 1.5% loss
Source-Tradingview
The Bitcoin price showcased a parabolic growth since the beginning of 2023, accounting for a 38% rally so far. During the bullish rally, the coin price breached several resistances, with growing volume indicating a sustained recovery phase.
Moreover, on January 20th, the BTC price witnessed a significant inflow and breached the latest horizontal barrier of $22500. This resistance breakout should have accelerated bullish momentum to encourage further growth, but it seems the sellers are actively defending the higher prices.
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Over the past few days, the Bitcoin price has shown multiple higher price rejections at the $23000 mark. These daily rejection candles project exhausted bullish momentum and early profit booking from temporary traders.
By press time, the Bitcoin price trades at $22833, within an intraday loss of 0.42%. The higher price rejection attached to today’s candle indicates the selling pressure still persists. Thus, a daily candle closing below $22500 will undermine the recent breakout and signal a bull trap.
This breakdown will trigger a temporary pullback in Bitcoin price to replenish the bullish momentum. In case of a potential pullback, the coin price will likely revisit the $21600 or $20400 support.
Technical Indicator
RSI– The daily- RSI slope is still wavering in the overboard region, a minor consideration or pullback to stabilize the bullish recovery.
EMAs: the 200-day main moving around the $21000 mark could assist buyers in resuming the bullish train.
Bitcoin Price Intraday Levels
- Spot rate: $22851
- Trend: Bearish
- Volatility: High
- Resistance levels- $25000 and $28000
- Support levels- $22500 and $21500
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