The last few days have been indecisive for Bitcoin following the drops in volatility. It has halted the bullish rally for weeks as sentiments build up for bearish on the micro level.
Last week, Bitcoin saw a mild recovery above the $23k level after shedding almost $3k from its price in two weeks. The bullish trajectory is now on hold due to weakness in buying. The bears took advantage of this and they are now showing interest.
Yesterday, the price jumped to $24k but quickly dropped off that weekly resistance level due to rejection. The bears’ reaction to this level pulled the price lower. While they keep defending that level, BTC fell to a daily low of $23.3k as selling pressure mounts.
The price actions look indecisive on the higher time frame but the sellers are beginning to show up on the lower time frame. The buyers seem to be losing track on a daily scale. Despite the weekly loss, the bullish trajectory is still valid from a short-term perspective.
However, we should keep abreast of a potential short, which would become valid once the price plummets the $21.5k level. This will invalidate the diagonal trend line acting as support since mid-January.
Bitcoin will have to climb back above the weekly resistance level to revive the bulls’ hope and to keep the price high. Though it has slightly lost track. There’s still a chance for an increase if it can reclaim the $25k resistance level.
Bitcoin’s Key Levels To Watch
If Bitcoin regains momentum and advances above the mentioned weekly resistance level, the next buying level to consider is $24,277 and $25,255 – marked as February high. The above resistance levels are $26k and $26.7k.
The closest area of interest for the sellers are the $23k, $22.7k and $22.3k support levels. If those level fails to hold, the psychological support to consider for a drop lies at $22k.
Key Resistance Levels: $24,000, $24,277, $25,255
Key Support Levels: $22,700, $22,306, $21,552
- Spot Price: $23,400
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: tonktiti/123RF // Image Effects by Colorcinch
