During the past few weeks, BitcoinBTC’s sharp rise has put the largest digital asset into the spotlight in the cryptocurrency market, with BTC soaring to all-time highs on Wednesday. While this rise has been notable, Bitcoin may be set for a potential correction as the uptrend has begun to show signs of cooling down, sparking speculation among investors and traders about its near-term price performance.
A potential correction phase sparks Bitcoin
Some developments around Bitcoin show that the cryptocurrency asset may be on the verge of a price correction after its recent significant upward move. Given the low price momentum and overbought conditions indicated by technical indicators, the current BTC price level appears to be due to this. Short-term decline Before they gather again.
According to According to analysts at IC News, traders are currently waiting for huge unrealized profits as BTC continues to rise. Specifically, this increases the possibility that the rally will stop and a price correction will occur, providing potential buys at lower price levels. So far, several crucial support levels are being closely monitored to determine BTC’s ability to maintain its uptrend or whether a larger decline may occur.
It is worth noting that Bitcoin is also expected to decline Shown By the main Relative Strength Index (RSI) indicator, which has moved into the overbought zone due to the strong rise in the value of Bitcoin. This increases the possibility of a short or short correction Consolidation stage short term. As a result, the next immediate support level to pay attention to is at the $85,000 level.
In case the cryptocurrency asset declines and falls below the above-mentioned range, short-term bulls may feel pressure to take profits, which could eventually lead to a decline to the 20-day Exponential Moving Average (EMA) at $76,451 range.
On the other hand, if Bitcoin maintains an upward movement, $93,554 could be the next critical barrier. Moreover, if the bulls can push prices beyond the pivot level, BTC/USDT could rise to the psychological resistance point at $100,000. Meanwhile, when this key level is breached, IC News is confident that the next critical stop point for BTC will likely be $113,331.
BTC price is showing bearish sentiment
After hitting A New all-time high At $93,420, Bitcoin fell below $88,000, raising fears of further losses. Although the decline may constitute an extended price decline, many analysts believe that the move is necessary for the digital asset to rise in the future.
last day, Bitcoin It fell about 3%, to $87,899. However, the larger outlook, such as the weekly and monthly time frames, show upward strength of over 15% and 31% respectively.
Today’s decline can be attributed to declining investor confidence, as evidenced by the decline in Bitcoin trading volume last day, falling by more than 26%.
Featured image from Unsplash, chart from Tradingview.com
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