Bitcoin Price Correction Key Levels and Resistance

When it traded below the $98,000 support, the price of bitcoin began a new downward trend. Bitcoin is presently recouping losses after falling near the $95,000 mark. Bitcoin has begun a new downtrend below the $98,000 support area. The price currently trades under $98,000 and the 100-hour simple moving average.

According to the hourly chart of the BTC/USD pair (data feed from Kraken), a bearish trend line is starting to emerge, with resistance at $98,800. Regaining momentum could be possible for the pair if it manages to close above the $98,800 resistance zone.

Once it passed the $100,000 mark, Bitcoin’s price stalled. Bitcoin’s price began a new downward trend and traded below the $98,000 mark. The $96,500 support level was breached.

Even below $95,000, the price skyrocketed. At $94,140, the price hit a bottom and began a wave of recovery. Above the $96,500 mark, a change occurred. After a falling wave from a swing high of $100,432 to a low of $94,140, the price has risen above the 50% Fib retracement level.

The bitcoin price has recently breached both the $100,000 mark and the 100-hour simple moving average. Price action on the upside may encounter resistance close to the $98,000 mark. The price is at the $94,140 low, close to the 61.8% Fibonacci retracement level of the falling wave from the $100,432 swing high.

Approximately $98,800 marks the first significant level of resistance. The hourly chart of the BTC/USD pair shows resistance at $98,800 and a connected negative trend line. The price might increase if it breaks above the $98,800 resistance level. Maybe $100,000 will be the next major obstacle. The price might increase if it closes above the $100,000 obstacle.

The price might increase to the $104,200 resistance level if the scenario is correct. If prices continue to rise, they might reach $108,000. It may initiate a new downward decline if Bitcoin cannot break through the $98,800 resistance level. Near the $96,500 mark, there is immediate support on the downside.

Near the $95,500 mark, you can find the first significant support. The $94,200 area is now the next potential support. If prices continue to fall, they might soon find support near the $92,000 mark.

Bitcoin Price Correction

Several strategies can be employed for traders looking to take advantage of a Bitcoin price correction. One common approach is “buying the dip,” where investors accumulate Bitcoin when the price returns to key support levels, anticipating a rebound. This strategy can be effective if the broader bullish trend remains intact, as corrections are temporary in a long-term uptrend.

Another strategy is to short-sell Bitcoin during the correction if the asset is showing signs of weakness and resistance is holding. Short selling involves borrowing Bitcoin to sell it at the current price, with the intention of buying it back at a lower price after the correction.

For long-term investors, the best approach during a price correction is to remain patient and focused on the fundamentals. Since Bitcoin’s long-term outlook remains bullish for many, the price corrections may be viewed as opportunities to accumulate more BTC at a lower price, particularly if the asset finds strong support at key levels.

Conclusion

Bitcoin’s price correction is essential to its market cycle, providing opportunities for traders and investors. Understanding the key support and resistance levels can help individuals navigate this volatile environment. Traders and investors should focus on the psychological price levels, Fibonacci retracement levels, moving averages, and previous support zones to identify potential entry and exit points.

Resistance zones, such as the $40,000 to $42,000 range and the $60,000 mark, are crucial to watch as Bitcoin tests these levels after corrections. Patience and a well-planned strategy are essential when navigating Bitcoin’s price correction. Whether you are looking to capitalize on short-term price swings or accumulate for the long term, knowing these key levels can help you make informed decisions as Bitcoin continues its volatile journey in the market.

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