After Bitcoin increased by a total of 35% in the first three weeks of the year, it took a break and initiated another buy yesterday. This buy could facilitate another upward rally as BTC dominance now sits at 42.5%.
Throughout this month, Bitcoin has been on the rise and closed well above the $23k level last week. The price is much more likely to remain above that level as it prepares to wrap up the month on a bullish note.
However, it is important to note that this price level now acts as a crucial level for a decline.
Following the latest surge in volatility – which puts the price at a five-month high of $23.9k last weekend – BTC may advance rally to August 2022 high if the price continues to increase by the day.
But looking at the choppy price actions over the past days of trading, the short-term rally seems to be reaching an exhaustion point.
Another thing to consider for a potential price drop is the daily volume indicator that has faded out since Bitcoin broke out of the channel weeks back. We can see that the price and volume are not in agreement – a divergence might be underway.
And if Bitcoin continues to act upon yesterday’s surge, we can expect it to register more gains before the price falls in the coming days. Based on coinmarketcap metrics, the price is up by 3%, with a market cap of $449 billion today.
Bitcoin’s Key Levels To Watch
There are several supports on the lower time frame, but the major level to consider for a decline is $23k on the daily scale. The support beneath that level is $22,306, marked as last week’s low. It is followed by the $21,552, $20,647, and $20,000 mark levels.
On the way up, the resistance levels to watch are $24,277, $24,678, and $25,206. These levels could come into play this week.
Key Resistance Levels: $24,277, $24,678, $25,206
Key Support Levels: $23,000, $22,306, $21,552
- Spot Price: $23,700
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: z1b/123RF // Image Effects by Colorcinch
