Posted 10 minutes ago
Amidst growing uncertainty in the crypto market, Bitcoin price recently reversed from the psychological resistance of $25,000 and triggered a fresh correction. The continued drop has dropped the price by 8.61%, where it is currently trading at the $22,944 mark. Furthermore, with the recent breakout of the last swing high resistance, BTC price is poised to drop further.
Key points:
- Bitcoin price is witnessing an occasion correction phase in an ongoing bull run
- A bearish divergence on the daily slope of the RSI sharpens Bitcoin price to witness a longer correction.
- Bitcoin intraday trading volume is $17.2 billion, indicating a 32% loss
Source-Tradingview
On Feb 24th, Bitcoin’s price drop took a massive break from the last swing high resistance of $25,000. This strong sell-off could be the result of the panic selling caused after the release of the Personal Consumption Expenditure Price Index (PCE) data. The stronger than expected result of the PCE inflation data caused a significant drop in most major cryptocurrencies.
Today, BTC price is trading at the $22,944 mark with an intraday loss of 1.04%. However, the lower price rejection attached to the daily candle indicates that prices are likely to retest the breached $23,600 level as a potential support. If the coin price shows sustainability below the $23,600 mark, the ongoing correction phase will extend to lower levels.
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Considering the Fibonacci retracement level, Bitcoin price is taking support from the 0.236 FIB level at $23,000. However, if selling pressure persists, the aforementioned indicator suggests that the currency holder has stronger support that could help buyers resume the rally.
With sustained selling, BTC price could hit the 0.5FIB level at $22550, followed by the 0.618FIB level at the $21500 mark. This crucial support could regain bullish momentum and offer pullback opportunities for traders interested.
However, any further declines will call into question the validity of the overall uptrend.
technical indicator
RSI: Unlike the higher bull formation in price action, the daily slope of the RSI indicates weakness in bullish momentum and a greater possibility of a longer correction.
EMAs: The BTC price drop has broken the slope of the 20-day EMA, indicating a longer correction for coil holders. Furthermore, the 200-day move near the $21,500 mark adds to the strength of this support.
Bitcoin Intraday Price Levels
- Cash rate: 22937
- trend: down
- Volatility: Average
- Resistance Levels – $23600 and $22500
- Support Levels – $22500 and $21500
The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.