Published 19 hours ago
The new year recovery in the Bitcoin price takes a halt after the breakout of $22500 resistance. Though this newly reclaimed level should have offered coin buyers a suitable footing to lead further rallies, the coin price is struggling to sustain at higher levels. The BTC price getting rejection at the $23000 mark indicates an upcoming correction phase.
Key points:
- Multiple rejection candles at $23000 suggest may the BTC price struggle to sustain the recent breakout
- A bullish crossover between the 50 and 100 may assist traders in keeping bullish sentiment intact.
- The intraday trading volume in Bitcoin is $16.2 Billion, indicating a 1.5% loss
Source-Tradingview
The Bitcoin price showcased a parabolic growth since the beginning of 2023, accounting for a 38% rally so far. During the bullish rally, the coin price breached several resistances, with growing volume indicating a sustained recovery phase.
Moreover, on January 20th, the BTC price witnessed a significant inflow and breached the latest horizontal barrier of $22500. This resistance breakout should have accelerated bullish momentum to encourage further growth, but it seems the sellers are actively defending the higher prices.
Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023
Over the past few days, the Bitcoin price has shown multiple higher price rejections at the $23000 mark. These daily rejection candles project exhausted bullish momentum and early profit booking from temporary traders.
By press time, the Bitcoin price trades at $22833, within an intraday loss of 0.42%. The higher price rejection attached to today’s candle indicates the selling pressure still persists. Thus, a daily candle closing below $22500 will undermine the recent breakout and signal a bull trap.
This breakdown will trigger a temporary pullback in Bitcoin price to replenish the bullish momentum. In case of a potential pullback, the coin price will likely revisit the $21600 or $20400 support.
Technical Indicator
RSI– The daily- RSI slope is still wavering in the overboard region, a minor consideration or pullback to stabilize the bullish recovery.
EMAs: the 200-day main moving around the $21000 mark could assist buyers in resuming the bullish train.
Bitcoin Price Intraday Levels
- Spot rate: $22851
- Trend: Bearish
- Volatility: High
- Resistance levels- $25000 and $28000
- Support levels- $22500 and $21500
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bitcoin-price-analysis-hints-a-potential-bull-trap-at-22500-keep-holding/