After Bitcoin rallied by over 50% in the past month, it took a break and made a significant downturn. The price plunged sharply to a key support level this week. It bounced slightly and now looking for a retest.
Bitcoin recently rejected $24.3k after experiencing a consistent increase throughout the last month. The price broke down and fell to a weekly low of $21.5k on Friday. However, it has recovered slightly from this low level to a trading price of $21.9k.
Ahead of the January consumer price index – CPI, which will be released in the next few days, Bitcoin lost the $23k level after failing to extend bullishness earlier this month. It is now looking for a key level to initiate another sell-off.
The primary cryptocurrency appears to be waiting for the CPI release to determine the next direction of the market. Looking at the setups from a technical perspective, more negative actions could come into play by next week. The major level to watch for this retracement move lies at $18.5k.
However, if the negative scenarios occur earlier than expected, Bitcoin is expected to bounce back and resume bullish after the release. For now, Bitcoin is bearish as a more potential decline is underway. The price is down by 12% in the past seven days of trading.
Bitcoin’s Key Levels To Watch
Source: Tradingview
A look at the market structure suggests more potential sell-off on the daily chart. This week’s low of $21.5k remains a crucial level for a breakdown. The support levels below that low are $20,650 and the $20k psychological level. There’s also support at $19k if those levels fail to provide a rebound.
There is no room for buying at the moment. But if the BTC price jumps ahead of the release, the first resistance level to keep in mind is $22,306, followed by $23,463. The $24,277 resistance level remains a crucial point for a bullish continuation.
Key Resistance Levels: $22,306, $23,463, $24,277
Key Support Levels: $21,500, $20,650, $20,000
- Spot Price: $21,917
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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