Published 6 mins ago
As mentioned in our previous article, the last three weeks of Bitcoin price action shaped a rising channel pattern. On February 5th, the coin price breakdown from the pattern’s support trendline was a signal for upcoming downfall. Thus, the Bitcoin Price witnessed a three-day losing streak and plunged back to $21500 support. Here’s why this level is important for coin holders.
Key Points:
- The falling Bitcoin price plunged below the 20-day EMA slope
- The $21500 and $20500 stand as strong support in the buyer’s favor
- The intraday trading volume in Bitcoin is $31.4 Billion, indicating a 4.3% gain.
Source-Tradingview
After an explosive rally in January 2023, the Bitcoin daily chart showcased several higher price rejection candles near the $23800 level. These rejection candles signaled the exhaustion of bullish momentum and the need for a correction phase.
As a result, the BTC price has been 6.5% down in the last two days, retesting at the local support zone of $21500. Furthermore, the US SEC’s allegations that Kraken offered unregistered crypto-staking programs contributed to the aggressive downfall, as well.
By the press time, the Bitcoin price trades at $21760, which can continue to wobble above the $21500 support. The daily chart shows a Doji-type candle which means the buyers are preventing further down but are not yet strong enough to resume price recovery.
Also Read: Top Crypto Discord Servers/Groups Worth Joining In 2023
Anyhow, the whole retracement phase is supposed to replenish bullish momentum and support buyers to resume prior recovery. Thus, the coin holders should keep a close eye on the $21500 and $20500 support levels.
The BTC price could witness demand pressure rising at the aforementioned support, holding considerable strength to push it higher. Thus a candle closing above $22500 will hint at the uptrend resumption.
On a contrary note, a breakdown below $20500 will question buyers’ commitment and may cause a further downfall.
Technical indicator
RSI: the daily-RSI slope divided below the midline, indicating a negative sentiment spread for Bitcoin.
EMAs: the 200-day EAM slope moving near the $21500 support enhances the support strength of this level.
Bitcoin Price Intraday Levels
- Spot rate: 21740
- Trend: Bearish
- Volatility: Medium
- Resistance levels- $22500and $23800
- Support levels- $21500 and $20500
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
