Here are the Reasons Why Bitcoin Prices Are At Risk Of A 8% Drop
The rising channel pattern has led to Bitcoin’s price rally over the past two weeks. It is represented by two parallel lines that connect the highs and lowests of an asset’s price. The upper line acts like resistance while the lower line acts like support. The trend is bullish as long the price stays within the channel. However, a break below the lower support can signal a possible trend reversal.
The Key Points
Bitcoin prices will continue to rise until the channel pattern is broken.
A break below the pattern’s support line will trigger a bearish pullback
Bitcoin’s intraday trading volume is $237.5 billion, which indicates a 19% loss
Bitcoin’s short-term trend is clearly bullish due to its remarkable recovery since the start of the new year. The daily chart has shown several price rejection candles that have been higher in the last two weeks. This is a sign that the bullish momentum is waning.
The BTC price also showed a rising channel pattern. This is the most common outcome of a break from the support trendline, which can trigger a significant fall. The current price of the coin is $23335, 3.8% lower than the resistance trendline at $24250.
Also read: CRYPTO ELEGRAM CHANNELS LIST 20223
If the selling pressure continues, the Bitcoin price could breach the pattern’s support line and signal a correction. This bearish pullback could be beneficial to the overall bull trend as the coin has not had a decent break since January 1st.
This could cause the BTC price to plummet by 8.2% and bring it back to $21400. If the prices rise above $24000 support, the coin holders may be able to seize this pullback opportunity.
Contrary to popular belief, the pullback thesis is invalidated if the coin’s price remains above the support trendline, or breaks the overhead resistance.
RSI: In contrast to rising prices, the daily RSI slope dropping accentuates weakness in bullish momentum. This negative divergence encourages a small correction in BTC.
EMAs: The 200-day EMA wobbling at the $24000 mark, raises the support strength of that level.
Bitcoin Price Intraday Levels
Spot rate: $23176
Volatility is high
Resistance levels: $25000 and $28000
Support levels: $22500 and $251500
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