The price of bitcoin has dropped after the popular cryptocurrency reached a fresh peak early in the week. Crucial psychological mark around $21,000 has worked as a small band of support and resistance for the value of bitcoin. Over the past 2 weeks most cryptocurrencies have rebounded and dominating price action following a good start to 2023. Ethereum (ETH) has suffered slight losses, dropping below $1600, as BTC has declined from a top of $21646.
TECHNICAL EXAMINATION
Following briefly crossing over the $21473 top from Nov 2022, Bitcoin prices gradually increased eventually rising to a new four-month top of $21646. Technical tiers have functioned as a supplemental motivator for price movements, however a change in perception as well as an increase in bullish acceleration served as the initial triggers for the recovery.
On the week graph, this surge that lifted prices 22percentage points ahead last week has been supported by a significant break of prior resistance around $17792. The creation of a weak candle in the week signals that bulls could be losing steam since last week’s rise was represented by a long, filled candle.
Unable to make inroads over $21600 has mounting tension on the upward movement, that is already feeling strain given that the candlestick wick’s tip is now visible just over the Nov peak.
BTC/USD is trading above the psychological support barrier, which is now maintaining over $21000, from a brief perspective. Whereas the daily candle that is currently open strives to develop a distinctive directional stance, upward increases have appeared to be restricted. If prices breach through $20195, the 14.4percentage – point Fibonacci retracement of the 2022 advance, they may drop back to near the 2017 top at $19666.
A revisit of $21600 and a breakthrough beyond $22000 might facilitate a positive extension towards to the Sept 2022 top of $22781 as Bitcoin prices remain above the 200-day MA (moving average) around $19557.
