Bitcoin Price Hits First Fibonacci Retracement Resistance; Will Downtrend Continue?

From the All-Time High of $68,789, the Bitcoin price tumbled around 77% to reach the last swing low of $15600. However, the year 2023 brought a new recovery rally in the crypto market and surged the BTC price to the $28300 mark. Considering the overall downtrend, the recent bullish rally has managed to recover 23.6% of the total loss. However, the $28300 level aligned with the 0.236 FIB level creates a strong resistance that can resume the prior downfall.

Key Points:

• The Bitcoin price may witness a minor correction to $25000 before resuming its prevailing recovery rally.
• Bitcoin Fear and Greed Index at 66% indicates bullish sentiment from market participants.
• The intraday trading volume in Bitcoin is $15.9 Billion, indicating a 43% loss.

Source-Tradingview

In technical analysis, a retracement to the 0.236 Fibonacci retracment level isn’t sufficient to consider trend reversal, and in contrast, it is a well-known resistance that can assist sellers to recuperate bearish momentum.

Currently, the weekly chart shows a Doji-type candle at the $28300 level, which is a sign of market uncertainty. If the coin price turned down from the aforementioned level the coin holders can wait for a breakdown below $25300-$25000 crucial support to get additional confirmation of downtrend resumption.

Also Read: What Are Bitcoin Ordinals And How Do They Work?

On a contrary note, a breakout above the combined resistance of $28300 and 0.236 FIB level will prolong the ongoing bullish recovery to $36100 aligned with the 0.382 FIB level. Continuing with an optimistic view, a breakout from each Fibonacci retracement level will give additional confirmation to carry a sustained bull run.

Technical Indicator

Relative Strength Index: the weekly RSI slope reach a value of 64% which was last recorded during the November 2021 bull run. The indicator value above the midline indicates the market sentiment encourages further rally.

Exponential Moving Average: the 50-and-200-weekly EMAs wavering near the $25000 mark increases the support strength of this level. Thus, a breakdown or reversal from this level is a crucial price action to watch.

Bitcoin Price Intraday Levels

• Spot rate: $27751
• Trend: Bullish
• Volatility: High
• Resistance levels- $28300-$28000 and $32000
• Support levels- $26700 and $2500