Fibonacci Indicator Foretells The Extend Of Ongoing Correction In Bitcoin Price; Mark These Levels
Amid the increasing uncertainty in the crypto market, the Bitcoin price recently reverted from the $25000 psychological resistance and triggered a new correction. The ongoing downfall has tumbled the price by 8.61% where it is currently trading at the $22944 mark. Furthermore, with the recent breakdown of the last swing high resistance, the BTC price is poised for further downfall.
Key Points:
- Bitcoin price is witnessing an occasion correction phase in an ongoing bull run
- A bearish divergence in the daily RSI slope accentuates the Bitcoin price to witness a longer correction.
- The intraday trading volume in Bitcoin is $17.2 Billion, indicating a 32% loss
Source-Tradingview
On February 24th, the falling Bitcoin price gave a massive breakdown from the last swing high resistance of $25000. This sharp sell-off could be the result of panic selling caused after the release of the Personal Consumption Expenditures (PCE) Price Index data. The Stronger-than-expected outcome from PCE inflation data caused a significant downfall in the majority of major cryptocurrencies.
Today, the BTC price trades at the $22944 mark, with an intraday loss of 1.04%. However, the lower price rejection attached to the daily candle indicates the prices are likely to retest the breached $23600 level as a potential support. If the coin price shows sustainability below the $23600 mark, the ongoing correction phase will extend to lower levels.
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Considering the Fibonacci retracement level, the Bitcoin price is obtaining support from the 0.236 FIB level at $23000. However, if the selling pressure persists, the aforementioned indicator suggests the coin holder possesses more strong support that could assist buyers to resume bullish.
With sustained selling the BTC price may meet the 0.5FIB level at $22550, followed by the 0.618FIB level at the $21500 mark. This crucial support could recuperate the bullish momentum and offer pullback opportunities to interest traders.
However, any further downfall will question the validity of the overall uptrend.
Technical Indicator
RSI: contrary to the higher high formation in price action, the daily RSI slope indicates a weakness in bullish momentum and a higher possibility for longer correction.
EMA’s: the falling BTC price breached the 20-day EMA slope indicating longer correction for coil holders. Moreover, the 200-day moving near the $21500 mark increases the support strength of this support.
Bitcoin Price Intraday Levels
- Spot rate: 22937
- Trend: Bearish
- Volatility: Medium
- Resistance levels- $23600 and $22500
- Support levels- $22500 and $21500
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