Bitcoin Price Lost 50% Retracement Level In Its Correction Phase; More Downfall Ahead?

BTC Price Prediction: The second week of March 2023 brings more pain to the crypto market as it lost the $1 Trillion mark in total market capitalization. As a result, the majority of major cryptocurrencies witnessed a sharp downfall, and the market leader, Bitcoin also tumbled 10.75% since last week. Amid this downfall, the BTC price plunged below the 0.5 Fibonacci retracement level, suggesting a further downfall is possible.

Key Points:

• The Bitcoin price losing 0.5FIB indicated weakness in bullish momentum and lessers possible for uptrend continuation.
• A bearish crossover between the 20-and-50-day EMAs may accelerate the ongoing selling pressure
• The intraday trading volume in Bitcoin is $43.2 Billion, indicating a 92% gain.

Source-Tradingview

The crypto market witnessed a bloodbath this week and its recent losses could be associated with the US Bank silicon valley share declining 60.4% on March 9th. As a result, the largest cryptocurrency prolonged its ongoing downfall and plunged below the 0.5 Fibonacci retracement level.

A significant surge in trading volume as the coin price breached 0.5 FIB level indicates the sellers are confident in sustaining higher prices. Today, the Bitcoin price trades at 19875 with an intraday loss of 2%.

Also Read: What Are Bitcoin Ordinals And How Do They Work?

If the daily candle closes below this crucial support the sellers will obtain additional resistance to pressurize buyers and plunge the coin price lower. Thus, with sustained selling in the market, the BTC price could tumble another 5.5% to visit the combined support of $19000 and 0.618 FIB level.

Technical indicator

RSI: the daily-RSI slope is on the verge of diving into the oversold region accentuating the selling pressure in the market is aggressive.

EMAs: The Bitcoin price plunged below the crucial daily EMAs(20, 50, 100, and 200) indicating an established downturn in the market.

Bitcoin Price Intraday Levels 

• Spot rate: $1976
• Trend: Bearish 
• Volatility: High
• Resistance levels- $20500 and $21500
• Support levels- $19000 and $18225