Bitcoin seems to have reached an exhaustion point following a series of rejections in the past few days. It has lost 4% in a week, with dominance at 41.5%. However, it still looks bullish but is currently weak.
After Bitcoin formed a bullish pattern in the past months, it increased and broke several resistance levels to reach a local high of $24.3k last week. This momentum culminated in a 50% rally within five weeks.
Meanwhile, BTC has witnessed a series of rejections since the price touched $23k on January 21, followed by $23.8k and others. These multiple rejections have led to a curve – marked in the daily chart below – which indicates a potential fall.
Things are now looking unusual following the consistent decrease over the past five days – BTC is now trading at around $22.8k. The much-anticipated correction seems to be in play. We may see the price below $20k by the end of this week.
And if it manages to regain momentum above the current local high, we can expect Bitcoin to tap another high level. With the current situation, the primary cryptocurrency looks exhausted and weak.
No doubt that Bitcoin has gained momentum and performed impressively well since the start of the year. In fact, its dominance has put the global market cap back above $1 trillion. The current setup looks exactly like the previous bull run. History is repeating itself.
Bitcoin’s Key Levels To Watch
There’s still hope for an increase if Bitcoin can recover well above $23k. It would need to reclaim the hourly drop level of $23,340 as resistance, followed by $23,800 and $24,255. The $24,678 and $25,200 resistance levels are next if the price increases.
Following the current loss, a massive sell action could occur if BTC further loses the important support of $22,306. The lower support levels to consider are $21,552 and $20,650. It can even drop to as low as $18.5K if a deep correction occurs.
Key Resistance Levels: $23,340, $23,800, $24,255
Key Support Levels: $22,306, $21,552, $20,650
- Spot Price: $22,860
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: artmagination/123RF // Image Effects by Colorcinch
Source: https://nulltx.com/bitcoin-price-analysis-prediction-feb-7th-btc-reaches-exhaustion-point-likely-to-lose-momentum-soon/