Rising Bitcoin Price Stalles At $21500 Resistance; Has Correction Phase Begun?   

The higher price rejection candles at the monthly resistance of $21500 indicate the bullish momentum is getting exhausted. This reversal signs in price action and oversold outlook from technical indicator project debate coin price is likely to witness a minor pullback. Here’s how you may handle the upcoming pullback in Bitcoin price.

Key points:

• A potential bearish reversal from the $21500 resistance may tumble the coin by 14%
• The reclaimed EMAs(20, 50, and 100) could offer significant support during the a bearish pullback
• The intraday trading volume in Bitcoin is $25.5 Billion, indicating a 5% gain

Source-Tradingview

on January 12th, the. Bitcoin price gave a massive Breakout from the falling wedge pattern of the daily time frame chart. The post-breakout rally drove 15% higher to hit the $21,500 resistance. However, in the last three days, the daily charge shows higher price rejection from the mentioned level.

These failed attempts from coin buyers to surpass the $21500 ceiling indicate a higher possibility of bearish reversal. In addition, the exponential recovery in the Bitcoin price since January 1st could use a temporary correction to stabilize the bullish trend. 

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However, the suffering Bitcoin mining industry continues to distress coin holders on a fundamental level. Moreover, the on-chain data provider Cryptoquant recently highlighted the Bitcoin mining difficulty had reached a new ATH of 37.59 Trillion amid the recent adjustment. If this progress prolongs in mining difficulty, the BTC price could struggle to maintain a sustained rally.

For a potential pullback, the BTC holders should keep an eye on the following support levels, as said, could resume the prior recovery. Therefore, a reversal from the $21500 ceiling could dump the largest cryptocurrency by market cap to $20350, $19000, or $18200.

On a contrary note, a breakout from the falling wedge initiates a bullish rally to the higher swing top of the pattern, which is $25000 for Bitcoin.

Technical Indicator 

Bollinger band: the rising BTC price constantly hitting the upper band of the indicator suggests the ongoing rally is aggressive for the time being, and thus a minor pullback is required to stabilize it.

MACD: the large gap between the MACD and signal line indicate the BTC price is under buyers’ control.

Bitcoin Price Intraday Levels

• Spot rate: 21207
• Trend: Bearish
• Volatility: High
• Resistance levels- $21500 and $22600
• Support levels- $20000 and $19100