Bitcoin price started a new declining trend as it traded below the $98,000 support. After dropping below the $95,000 barrier, Bitcoin is recovering some of its losses. A new slump will begin if Bitcoin prices drop below the $98,000 support level. Currently, the price is trading below the 100-hour simple moving average and $98,000.
According to the data feed from Kraken, a bearish trend line is beginning to appear on the hourly chart of the BTC/USD pair, with resistance near $98,800. Closing above this resistance zone could help the pair regain momentum.
Bitcoin Price Correction Recovery Levels
The price of Bitcoin stopped rising after it crossed the $100,000 threshold. After breaking below the $96,500 support level, it resumed its downward trend and traded below $98,000.
Prices soared even while they were below $95,000. The price bottomed out at $94,140 and then started to rise again. Something changed as we passed the $96,500 threshold. The price has broken out of its falling wave at $94,140, falling from a swing high of $100,432 to that level.
The price of Bitcoin has recently penetrated both the $100,000 barrier and the 100-hour simple moving average. Upward price activity might run into resistance near the $98,000 level. Near the 61.8% Fibonacci retracement level of the falling wave from the $100,432 swing high, the price is hitting the $94,140 low.
Bitcoin Key Resistance
At about $98,800, we encounter the initial substantial barrier. On the hourly chart of the BTC/USD pair, there is a negative trend line and resistance at $98,800. If it manages to break above this level, the price might rise. An additional $100,000 could be the next big hurdle. If it closes above this barrier, the price can go up.
In this case, a price rise to the $104,200 level would be possible. If prices keep going up, they can exceed $108,000. If BTC Price Correction fails to overcome the $98,800 resistance level, it might signal the start of a fresh negative trend. There is immediate downside support near the $96,500 mark.
The first major support is near the $95,500 level. We should expect further support around the $94,200 mark shortly. They may find support near the $92,000 level if prices keep falling.
Bitcoin Price Correction
Traders who want to profit from a Bitcoin price correction might use various tactics. A popular strategy is “buying the dip,” in which buyers wait for Bitcoin prices to retest important support levels before adding to their holdings in the hopes of a subsequent comeback. In a long-term upswing, corrections are only brief, so this technique can work if the overall positive trend continues.
If the BTC Price Correction displays indications of weakness and resistance is still holding, short-selling the asset during the decline could be another approach to consider. In short selling, you borrow Bitcoin at today’s price, sell it at a loss, and then purchase it back at a lower price when the market corrects.
The greatest course of action for long-term investors during a price correction is to maintain patience and focus on the fundamentals. Price corrections may be seen as chances to buy more Bitcoin at a lower price, especially if the commodity finds firm support at important levels. Many people still have a bullish outlook on Bitcoin’s long-term prospects.
Conclusion
Bitcoin’s price adjustment is necessary for its market cycle, giving traders and investors opportunities. Understanding important support and resistance levels might help people navigate this turbulent environment. Traders and investors should use psychological price levels, Fibonacci retracement levels, moving averages, and historical support zones to find entry and exit positions.
Bitcoin testing resistance zones like $40,000 to $42,000 and $60,000 after corrections are key. Bitcoin’s price correction requires patience and planning. Knowing these levels will help you make informed decisions as Bitcoin continues its tumultuous market journey, whether you want to capitalize on short-term price swings or accumulate for the long term.
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