- BTC price formed rejection candle on the weekly basis
- BTC price might retest 200 day EMA
- Technical indicators of the BTC is reversing down
Bitcoin price is trading with mild bearish cues and bear’s are trying to keep the prices below the $23,000 mark to show its presence on the higher levels. However, the selling seems to be temporary and the prices are likely to bounce back from the support zones.
Currently, The pair of BTC/USDT is trading at $22,789 with an intraday loss of 0.63% and the 24-hour volume to market cap ratio stood at 0.0504
Will the BTC price retest the 200 day EMA ?
On a daily time frame, BTC price is forming a bullish continuation pattern but the follow up is missing and prices got stuck in the narrow range consolidation which shows that the prices are lacking the momentum and likely to retest the 200 day EMA (green) curve before deciding the further direction.
BTC prices sustained above the 50 and 200 day EMA which indicates that the positional trend is still in the favor of bulls and any dips towards the demand zone will provide a buying opportunity for the short term traders. On the higher side $24,000 will act as an immediate hurdle for the bulls and if bulls succeed to break out of the $24,000 hurdle then price can rally toward $25,200 in a short span of time.
BTC technical indicators like MACD are reversing down and indicating mild bearishness which might be a matter of concern for the short period of time but the price action denotes that the probability of bouncing back from the demand zone is high due to the multiple support at the lower levels. Meanwhile, the red volume bars keep on decreasing and the RSI curve at 60 sloping down denotes that the prices are cooling off from the overbought zones.
Summary
BTC price faced resistance at $24,000 and reversing downward indicates that prices are lacking momentum on the higher levels and likely to retest the 200 day EMA before deciding the further direction. Therefore, traders may look for buying opportunities near to the 200 day EMA retracement for the target of $24,000 and above by keeping $21,000 as SL. However, if price drop below $21,000 then bear’s can drag it to $20,000 level.
Technical levels
Resistance levels : $24,000 and $25,279
Support levels : $21,500 and $20,500
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/02/06/bitcoin-btc-price-prediction-btc-price-drops-below-23000-is-it-a-buying-opportunity/