bitcoin btc price analysis

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

bitcoin price analysis
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.

Image Source: bhubeth/123RF // Image Effects by Colorcinch

Michael is a professional trader and cryptocurrency technical analyst with many years of trading experience. He became passionate about cryptocurrencies and blockchain technology through his sister and has since been following the industry


Please enter your comment!
Please enter your name here