Published 4 hours ago
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.
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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.
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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
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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.
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- Source: https://coingape.com/markets/rising-bitcoin-price-stalled-at-21500-resistance-has-correction-phase-begun/