Bitcoin Price Waver In A Make-or-Break Situation; Is It Safe To Buy More?

Amid the increasing bearishness in the crypto market, Bitcoin price is currently experiencing a minor correction. However, this retracement phase is mostly like a temporary pullback to replenish the prior recovery rally. The coin price is currently hovering above the $21500 support, trying to showcase its suitability at a higher price.

Key Points:

• The Bitcoin price breakdown from $21500 intensifies the selling momentum for further downfall.
• The 200-day EMA slope moving near the $21500 mark enhances the support strength of this level
• The intraday trading volume in Bitcoin is $15.1 Billion, indicating a 13% loss.

Source-Tradingview

January 2023 brought a massive recovery in the majority of major cryptocurrencies. As a result, the Bitcoin price rallied 44.3% since the new year began and formed a local top at the $23800 mark. However, as any indication that bullish momentum has exhausted the price started moving sideways below the mentioned top.

While uncertainty and selling activity in the crypto market increased, the Bitcoin price witnessed significant outflow and breached local support of $22500.This breakdown was a sign of a new correction phase in BTC price. As of now, the coin trades at $21800 and is 8.2% down from the last swing high. 

Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023

However, the coin price is obtaining suitable support from the $21500 footing, suggesting a minor bullish reversal to the $22500 mark. The Bitcoin price possible approach to $22500 will validate whether the ongoing correction is sustainable or not.

Thus, the coin holders should closely observe the price behavior at the $22500 mark, as a possible reversal will signal the market sentiment shifted from buying on a dip to selling on rallies. Therefore, Bitcoin may witness a longer correction and plunge to the $20350-$20150 mark.

On a contrary note, a breakout above $2250 will indicate the buyer has not thrown the towel yet.

Technical indicator

RSI: The decline in the daily-RSI slope below the midline suggests a negative sentiment rising for Bitcoin price.

EMAs: the recently breached 20-day EMA could offer additional resistance against buyers trying to resume price recovery.

Bitcoin Price Intraday Levels

• Spot rate: 21890
• Trend: Bullish
• Volatility: Medium
• Resistance levels- $22500 and $23800
• Support levels- $21500 and $20500