Bitcoin price falling since February 2nd triggered a sense of retracement phase in the crypto market. Thus, the BTC price tumbled 9.5% from the $23800 resistance and reached local support of the $21815 mark. However, over the past five days, the prices have been moving sideways, indicating uncertainty among market participants. Is this consolidation a start of a new recovery or just a break before further downfall?
- The $21500 level offers strong support to coin holders.
- The daily RSI slope plunged below the midline, indicating underlying selling pressure is high.
- The intraday trading volume in Bitcoin is $31.4 Billion, indicating a 4.3% gain.
After the explosive rally in January, the Bitcoin price is currently going through a correction phase. This temporary downfall is important for coin holders as it could recuperate the exhausted bullish momentum.
By the press time, the BTC price traders at the $21805 mark and continue to hover above the $21570-$21450 support zone. This minor consolidation phase has lasted over five days now, indicating there’s indecisive sentiment among market participants.
However, this uncertainty could be associated with upcoming January CPI data, whose announcement may bring more clarity to the market. As of now, the daily chart shows lower price rejections at $21570 support, indicating the buyers are defending this support.
If the buying pressure persists, the coin price may bounce back and retest the $22500 barrier. This overhead barrier is crucial for coin holders as a bearish reversal from it will signal the resumption of a correction phase. The resulting downfall may tumble the BTC price below the $21500 mark and revisit $20500.
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On a contrary note, a breakout above $22500 will indicate the buyers may rechallenge the $23800 barrier.
A significant gap between the bearishly aligned and signal lines indicate the sellers are maintaining an upper hand,
: the rising 50-day EMA may come to buyers’ aid and defend the $21500 support
Bitcoin Price Intraday Levels
- Spot rate: 21844
- Trend: Bullish
- Volatility: High
- Resistance levels- $22500 and $23800
- Support levels- $21500 and $20500
