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From the All-Time High of $68,789, the Bitcoin price tumbled around 77% to reach the last swing low of $15600. However, the year 2023 brought a new recovery rally in the crypto market and surged the BTC price to the $28300 mark. Considering the overall downtrend, the recent bullish rally has managed to recover 23.6% of the total loss. However, the $28300 level aligned with the 0.236 FIB level creates a strong resistance that can resume the prior downfall.
Key Points:
- The Bitcoin price may witness a minor correction to $25000 before resuming its prevailing recovery rally.
- Bitcoin Fear and Greed Index at 66% indicates bullish sentiment from market participants.
- The intraday trading volume in Bitcoin is $15.9 Billion, indicating a 43% loss.
Source-Tradingview
In technical analysis, a retracement to the 0.236 Fibonacci retracment level isn’t sufficient to consider trend reversal, and in contrast, it is a well-known resistance that can assist sellers to recuperate bearish momentum.
Currently, the weekly chart shows a Doji-type candle at the $28300 level, which is a sign of market uncertainty. If the coin price turned down from the aforementioned level the coin holders can wait for a breakdown below $25300-$25000 crucial support to get additional confirmation of downtrend resumption.
Also Read: What Are Bitcoin Ordinals And How Do They Work?
On a contrary note, a breakout above the combined resistance of $28300 and 0.236 FIB level will prolong the ongoing bullish recovery to $36100 aligned with the 0.382 FIB level. Continuing with an optimistic view, a breakout from each Fibonacci retracement level will give additional confirmation to carry a sustained bull run.
Technical Indicator
Relative Strength Index: the weekly RSI slope value at $64 was recorded during the November 2021 bull run. The indicator value above the midline indicates the market sentiment encourages further rally.
Exponential Moving Average: the 50-and-200-weekly EMAs wavering near the $25000 mark increases the support strength of this level. Thus, a breakdown or reversal from this level is a crucial price action to watch.
Bitcoin Price Intraday Levels
- Spot rate: $27751
- Trend: Bullish
- Volatility: High
- Resistance levels- $28300-$28000 and $32000
- Support levels- $26700 and $2500
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-hits-first-fibonacci-retracement-resistance-will-downtrend-continue/