Here’s What You Need To Know For Upcoming Correction In Bitcoin Price

Over the past two weeks, the Bitcoin price shows the formation of an ascending channel pattern. Though the coin price rallying within two rising trend lines showcases a steady uptrend, the most common outcome of this pattern is to trigger a significant downfall. Thus, under the influence of this pattern, the BTC price is poised for a temporary correction.

Key Points:

• The potential pullback in Bitcoin price could recuperate the exhausted bullish momentum
• The $213000 level stands as a strong support that may assist to resume the prevailing recovery rally
• The intraday trading volume in Bitcoin is $22.5 Billion, indicating a 38.5% gain

Source-Tradingview

On February 5th, the Bitcoin price gave a very breakdown from the channel patterns support trendline. Losing this support should increase the selling pressure in the market and tumble the price to lower levels.

By the press time, the BTC price currently trades at the $22834 mark, with an intraday gain of 0.3%. If the selling pressure persists, the coin price may plunge 7% down to revisit the $21550-$21300 support zone.

However, considering the size of this pattern, the potential correction could be temporary and, in fact, offer a pullback opportunity to market participants.

On a contrary note, a break above the breached trendline will offset the bearish thesis.

Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023

Bitcoin Global In/Out of the Money

Source-Intotheblock

The Global In/Out of the Money metric shows that 59.69% of BTC Addresses are in the money or releasing profits, and 35.65% of Addresses are out of the money or releasing lows. Thus, the new year recovery has brought a major portion of Bitcoin holders to profit, which decreases the likelihood of investors selling their position in panic and also increases the possibility of them holding for higher gain.

Technical indicator

MACD: a bearish crossover between MACD(blue) and the signal(orange) lines offer additional confirmation of a bearish pullback

EMAs:  the 200-day EMA moving at the $21300 mark creates a strong support level to face upcoming pullback.

Bitcoin Price Intraday Levels

• Spot rate: $22834
• Trend: Bearish
• Volatility: Medium
• Resistance levels- $25000 and $28000
• Support levels- $22500 and $21300