Overhead Supply Puts Bitcoin Price Under Correction Threat; Back to $29000?

Published 21 mins ago

Within the last two weeks, the Bitcoin price showcased a remarkable recovery as it jumped from $25000 to the $31150 mark. The aforementioned level is also the April 2023 peak and therefore holds sufficient supply pressure to tackle bulls. The daily chart started projecting long-wick rejections indicating the sellers are actively defending this level. Are the bulls exhausted, or is this a pullback before the next leap?

Also Read: Bitcoin Bull Run: BlackRock BTC ETF Likely To Get Green Flag

Bitcoin Price Daily Chart:

A new downsloping trendline can carry the potential correction in Bitcoin price
Amid the current downfall, the decreasing volume suggests the correction phase is temporary.
The intraday trading volume in Bitcoin is $9.12 billion, indicating a 38% loss.

(Source: Tradingview)

The overhead supply pressure has stalled Bitcoin price growth at $31150. Moreover, the higher-price rejection candles at this resistance indicate a higher possibility of a bearish reversal.

Anyways, this potential correction could be beneficial for BTC buyers to maintain the long run. This retracement could absorb the build-up selling pressure and replenish the exhausted bullish momentum.

As per the Fibonacci retracement tool, the $30000 aligned with 23.6% FIB, followed by $28980(38.2%) and $29000(50%) stands as an important support zone that will assist buyers to maintain a bullish outlook

Will Bitcoin Price Surpass $31500?

The daily time frame chart shows a new resistance trendline that can be used to follow the possible pullback in Bitcoin price. Until this dynamic resistance is intact, the coin price will maintain a downtrend and could plunge to the nearest support zone of $30000, and $28980. Therefore, a breakout above this trendline will be a key signal for uptrend continuation.

Fibonacci retracement levels: Until the Bitcoin price holds above the 50% FIB level the overall trend remains bullish
Exponential Moving Average: The 20-day EMA slope wavering near the $28980 level creates a strong support zone.

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

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/overhead-supply-puts-bitcoin-price-under-correction-threat-back-to-29000/