Over the past two weeks, the Bitcoin price has been rallying under the influence of a rising channel pattern. It is represented by two parallel lines connecting the highs and lows of an asset price, where the upper line acts as resistance and the lower line acts as support. However, the trend is considered bullish as long as the price remains within the channel, but a break below the lower support line can signal a potential trend reversal.
- The Bitcoin price will sustain an uptrend until the channel pattern is intact
- A breakdown below the pattern’s support trendline will trigger a bearish pullback
- The intraday trading volume in Bitcoin is $237.5 Billion, indicating a 19% loss
The short-term trend in Bitcoin is evidently bullish concerning its remarkable recovery since the beginning of the new year. However, in the past two weeks, the daily chart has shown several higher price rejection candles suffering the bullish momentum is getting exhausted.
Moreover, the BTC price showed the formation of a rising channel pattern whose most common outcome is a breakdown from the support trendline and triggering a significant downfall. As of now, the coin price has recently reverted from the pattern’s resistance trendline at $24250 and plunged 3.8% down to the current price of $23335.
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Thus, if the selling pressure persists, the Bitcoin price may breach the pattern’s support trendline, and signal an upcoming correction. However, this bearish pullback could benefit the overall bull trend, as the coin has never had a decent break since it’s January 1st.
Therefore, this downfall could plummet the BTC price by 8.2% and revisit $21400. The coin holders could grab this pullback opportunity if the prices show sustainability above the $24000 support.
However, on a contrary note, the pullback thesis will get invalidated if the coin price continues to stay above the support trendline or breaks the overhead resistance one.
RSI: conversely to the rising price action, the daily RSI slope falling accentuates the weakness in bullish momentum. Thus, this negative divergence encourages a minor correction in BTC.
EMAs: the 200-day EMA wobbling near the $24000 mark, increases the support strength of this level.
Bitcoin Price Intraday Levels
- Spot rate: $23176
- Trend: Bearish
- Volatility: High
- Resistance levels- $25000 and $28000
- Support levels- $22500 and $21500
The post Here’s Why The Bitcoin Price Is At Risk Of 8% Downfall appeared first on CoinGape.
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