by • Bitcoin dropped below $22K after failing to break its 8-month long resistance at $25K.
• The pullback is seen as a correction phase to form a new spike.
• Primary support levels are at $21K and the 50-day moving average which is currently at $20.3K.
Bitcoin Dipped Below $22K
Bitcoin’s recent rally has been followed by a slight bearish leg after being rejected from the $25K substantial resistance region, dropping below the minor support level of $22.3K. This pullback can be seen as a correction phase to form a new spike in Bitcoin’s price movement.
Bulls Might Be Preparing Another Push Higher
The overall sentiment among market participants has improved due to Bitcoin’s recent rally and this change of scene has spurred a positive momentum across the industry. After an impulsive surge, it is essential for the continuation of the rally that a correction phase takes place – usually simultaneous with the formation of pullbacks – and thus this recent drop could be considered such a case before another spike occurs.
Primary Support Levels
The primary support levels for Bitcoin include the price level of $21K and the 50-day moving average which is currently at $20.3K and will act as targets for this recent decline if it continues further downwards.
Technical Analysis By Shayan
On the 4-hour timeframe, sell-stop orders were grabbed below the minor support level of $22.3K during this correction phase, which suggests that buyers might be preparing another push higher once these current positions have been flushed out from over-heated futures market positions.
Conclusion
In conclusion, although Bitcoin dipped below $22k, signs point towards bulls preparing another push higher soon in order to continue its recent rally, with primary supports levels set at $21k and the 50-day moving average currently being at $20.3k should price fall further down during this correction stage before pushing up again impulively
