This month’s sell-off caused a serious panic among traders, as Bitcoin corrected by over 10% from its recent high. It currently appears weak daily while attempting to break down a head-and-shoulders pattern.
It’s been a tough month for Bitcoin as the price corrected under the $100k mark in the third week. Amid rising supply, the crypto further lost grip and fell to a low of $91,500 yesterday.
These drops have caused a lot of panic in the market as sentiments turn negative in the short term due to fear uncertainty and doubt – FUD. The $90k level is standing well but how long it will hold is yet unknown.
Looking at the price actions from a technical standpoint, BTC will likely chart more losses following a newly formed head-and-shoulder (H&S) pattern on the daily chart. A play out of this pattern could bring us back into the $80k range – a potential rebound area.
Failure to recover from that price range could drive the price lower until it locates a threshold. The correction phase is still looking intact.
Howbeit, it is important to note that the market remains bullish on a larger scale. Once it finds support, we can anticipate a fresh buying phase capable of rallying the price hard to a new high.
BTC’s Key Levels To Watch
Source: Tradingview
Aside from $92,232, the monthly $90,500 low still stands as support. A break below it could slip the price to the $85,072 support. The $81,500 level is another support to consider for drops, where the three-month rising trendline lies.
Holding the $90k level well, a resurge through the $99,540 level to a hidden $106,648 resistance could fuel the rally to $108,353 before breaking out to a new high.
Key Resistance Levels: $99,540, $106,648, $108,353
Key Support Levels: $92,232, $85,072, $81,500
- Spot Price: $94,109
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: igorigorevich/123RF // Image Effects by Colorcinch
