Last week saw Bitcoin through a small retracement following a bounce off a key level. It saw a rejection this week and initiated a drop for another leg down. The bears appeared back as February’s high lies for the next target.
After rejecting the $26k level twice in the previous bearish impulsive move, Bitcoin bounced off that price level last Thursday and retraced to $28.4k this Monday. The price was rejected with a bearish candle as it cuts over $1.2k from its price in three days.
Meanwhile, all these price corrections are still respecting the descending channel, forming inside the broadening wedge pattern on the daily chart.
While the price is facing down again, we may another impulsive move towards the channel’s lower boundary for the next couple of days. It may even reach the lower boundary of the wedge, where a major buy is expected to take place.
The daily volume indicator has reached an extremely low level, showing signs of little traded volume over the past three months. A rise in the volume signal line should hint at a potential increase, which is likely to happen when BTC resumes its mid-term bullish momentum.
At the time of writing, Bitcoin appeared to have resumed short-term bearish. The market cap stands at $527 billion with a 46.3% dominance.
Bitcoin’s Key Levels To Watch
As the price charges towards the $26,600 support level, a breakdown from that level could slip the price to the $25,800 level – marked as February high. The $25,255 and $24,000 levels are major support to watch for a rebound.
On the other hand, if Bitcoin finds solid ground above the immediate support level, the resistance levels to watch for an increase are $27,600 and $28,035, located around the channel’s upper boundary. A breakout could see the price to the $28,867, $29,000 and $30,000 resistance levels.
Key Resistance Levels: $27,600, $28,035, $28,867
Key Support Levels: $26,600, $25,800, $25,255
- Spot Price: $27,100
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Image Source: betochagas/123RF // Image Effects by Colorcinch
