Bitcoin Price Analysis: Retreats Below $23,500 Key Level; Hold Or Exit?

Bitcoin price analysis shows the buyers on the back foot. The price opened lower and scaled up to test the session’s high at $24,448.40. But retraced quickly and test the critical 21-day exponential moving average, where it is currently hovering.

The current price action indicates the bulls are exhausted near the higher levels and bears are making space for further correction. The 24-hour trading volume of the largest cryptocurrency is held at $30,603,898,759 with more than 7% gains. However, BTC/USD is reading at $23,422.79, down 1.85% for the day.

BTC slide below the critical support level of $23,500, and the longer the price stays below this level, the selling pressure would be more intense.

• Bitcoin price analysis fell for the fourth consecutive session on Wednesday.
• An inverted hammer near the 21-day moving average makes bulls hopeful of a quick recovery.
• However, a daily candlestick below $23,200 would favor the bearish sentiment.

Bitcoin price looks for support

On the daily chart, the Bitcoin price analysis trades with a negative bias, but the downside looks limited further.

For over a month BTC is trading with higher highs and higher lows, a classic bullish formation.  The price appreciated nearly 38% in the current upside rally. The price moves in a narrow range but remains steady with continuous upside moves. In today’s session, there are two factors that could serve in deciding the further course of action.

Inverted Hammer Candlestick: The price formed an inverted hammer in today’s session, which is a bullish reversal pattern. After testing the low of $23,317.62 the bulls managed to sustain the level.

21-day EMA: BTC found reliable support near the 21-day exponential moving average at $23,500.

On Balance Volume, (OBV) indicator fell as the price declined.

1-hour chart points to consolidation

On the hourly time frame, the Bitcoin price breaches the ascending trend line from the lows of $22,66.23.

The price fell to a short-term horizontal support zone of $23,200-$23,400 amid sharp selling. For the past few hours taking rounds near the mentioned area.

The formation of multiple Doji candlesticks suggests a bounce back from the lower levels. if the price trades above $23,500 on the hourly time scale we can expect an immediate bounce back toward $23,700.

On the flip side, a break below the session’s low would continue with the current bearish sentiment. The sellers would next target the $23,200 support area followed by $22,800.

The hourly RSI trades near the oversold zone with a bearish crossover. Any uptick in the oscillator would see a bounce back in the price.