Bitcoin

Bitcoin Analysis Hinting On Extended Downside Correction

Bitcoin is down over $500 from the $13,850 swing high against the US Dollar. BTC is showing bearish signs, and it could even decline below the $13,000 support.

  • Bitcoin failed to stay above the $13,500 support and declined below $13,200.
  • The price is currently consolidating near $13,200 and the 100 hourly simple moving average.
  • There is a crucial contracting triangle forming with support near $13,220 on the BTC/USD pair (data feed from Kraken).
  • The dynamic duo is likely to resume its decline below $13,200 and $13,100 in the near term.

Bitcoin Price Starts Downside Correction

Bitcoin price traded to a new monthly high at $13,850 before starting a significant downside correction. BTC broke the critical $13,500 support level to move into a short-term bearish zone.

The decline gained pace below the $13,200 level and the 100 hourly simple moving average. The price even spiked below the $13,000 level and traded as low as $12,899. Recently, there was a recovery wave above the $13,000 and $13,100 levels.

The decline gained pace below the $13,200 level and the 100 hourly simple moving average. The price even spiked below the $13,000 level and traded as low as $12,899. Recently, there was a recovery wave above the $13,000 and $13,100 levels.

The price traded above the 23.6% Fib retracement level of the recent decline from the $13,850 high to the $12,899 low. Bitcoin is currently consolidating near $13,200 and the 100 hourly simple moving average.

There is also a key contracting triangle forming with support near $13,220 on the BTC/USD pair’s hourly chart. If there is a downside break below the triangle support and $13,200, there is a risk of a fresh decline. The next significant support is near the $13,000 level.

Suppose the bulls fail to defend the $13,000 support level. In that case, it could open the doors for an extended downside correction towards the $12,600 level or $12,500 in the coming sessions.

Upside Break in Bitcoin?

If bitcoin stays above the $13,200 support level, it could clear the triangle resistance near the $13,315 level. The next key resistance is near the $13,375 station. It is close to the 50% Fib retracement level of the recent decline from the $13,850 high to the $12,899 low.

The bulls’ main hurdle is near the $13,500 level, above which the price is likely to restart its rally, and it could even revisit the $13,850 high.

Technical indicators:

Hourly MACD: The MACD is likely to move into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 levels.

Major Support Levels – $13,200, followed by $13,000.

Major Resistance Levels – $13,315, $13,375 and $13,500.

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