Bitcoin Price Dips By 3%, Is This Rally A Bull Trap?
The Bitcoin price witnessed a remarkable rally in the first three weeks of 2023. The bull run registered 42% growth from the January 1st low of $16499 and pushed the price to a $23400 mark. However, in the fourth week, the BTC started to show hesitation in a bullish recovery week, as several global events were about to unfold. Here’s how the largest cryptocurrencies may react amid upcoming events
Key points:
- A daily candle closing below the $23400 mark could trigger a longer correction in BTC
- Bitcoin’s fear and greed index at 61% indicates the market sentiment is still bullish
- The intraday trading volume in Bitcoin is $26.2 Billion, indicating a 2% gain
During the fourth week of 2023, the Bitcoin price started resonating between the $23400 and $22500 levels. The daily candles showing long rejections on both ends indicated uncertainty among market participants. This indecisiveness could be backed by upcoming events such as interest rate hikes by the US Fed, Europe Central Bank, and Bank of England.
However, on January 29th, the Bitcoin price witnessed a significant inflow and breached the overhead resistance of $23400. This breakout hints at the release of bullish momentum and a higher chance for uptrend continuation.
However, the Bitcoin price dropped 3% today and reenters the above-mentioned range. This downfall points to the prior breakout as a bull trap and a threatened coin price for a long correction.
Also Read: Top Crypto Discord Servers/Groups Worth Joining In 2023
If the daily candle closes below the $23400 mark, the BTC price will likely continue its consolidation in a narrow range or will dive deeper to revisit the $21600 or $19000 support. In addition, this downfall could force the liquidation of hasty buyers who entered on the $23400 breakout.
On a contrary note, if by the day’s end, the buyers push the candle closing above the $23400 mark, the bullish momentum will retain and drive the Bitcoin price higher.
Technical Indicator
MACD: the MACD(blue) and the signal(orange) lines on the verge of bearish crossover indicate the exhausted bullish momentum.
EMAs: the reclaimed EMAs (20, 50, 100, and 200) could offer suitable support during a bearish pullback.
Bitcoin Price Intraday Levels
- Spot rate: $23176
- Trend: Bearish
- Volatility: High
- Resistance levels- $25000 and $28000
- Support levels- $22500 and $21500
Recent Posts
- Price Analysis
Will Solana Price Hit $150 as Mangocueticals Partners With Cube Group on $100M SOL Treasury?
Solana price remains a focal point as it responds to both institutional alignment and shifting…
- Price Analysis
SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
SUI price remains positioned at a critical intersection of regulatory positioning and technical structure. Recent…
- Price Analysis
Bitcoin Price Alarming Pattern Points to a Dip to $80k as $2.7b Options Expires Today
Bitcoin price rebounded by 3% today, Dec. 19, reaching a high of $87,960. This rise…
- Price Analysis
Dogecoin Price Prediction Points to $0.20 Rebound as Coinbase Launches Regulated DOGE Futures
Dogecoin price has gone back to the spotlight as it responds to the growing derivatives…
- Price Analysis
Pi Coin Price Prediction as Expert Warns Bitcoin May Hit $70k After BoJ Rate Hike
Pi Coin price rose by 1.05% today, Dec. 18, mirroring the performance of Bitcoin and…
- Price Analysis
Cardano Price Outlook: Will the NIGHT Token Demand Surge Trigger a Rebound?
Cardano price has entered a decisive phase as NIGHT token liquidity rotation intersects with structural…