Bitcoin (BTC): The new bull market, a temporary bright spot or an established trend?

The week promises to be rather quiet on the economic calendar. We thus envisage much less volatility in the crypto market. Here are some interesting levels to watch in bitcoin (BTC).

Supports to watch on bitcoin (BTC)

BTC’s year-to-date bullish momentum appears to be waning. Indeed, the leader in cryptos by capitalization closed last week in the red. After the ECB’s interest rate hike slowed, the dollar rebounded 2.2% on Thursday. This caused bitcoin (BTC) to decline over the weekend, closing around $23,000. If this downward pressure continues, we can expect further declines this week. However, several support levels could support the price, not to start a new bear market.

The first closest relevant support is found around $21,000. This is a psychological zone (round number). Additionally, this level also aligns with the midpoint of the January 14-20 range. We also note the bullish engulfing on this level. Thus, we can consider a rebound of bitcoin (BTC) in this area. Another support is found just below this level: the psychological level of $20,000. It could also be that the price goes down to this level before continuing in the green.

Bitcoin (BTC): levels to watch this week
Bitcoin (BTC): levels to watch this week – BTC/USD – TradingView

The obstacles that could lead to a correction

Several obstacles are also to be watched this week. Indeed, with the appearance of the RSI divergence, we could bet on a correction scenario. In addition, we recently saw that a golden cross is approaching on the Daily scale. Thus, there is a good chance that bitcoin (BTC) will make a correction move this week. Here are the obstacles that a correction on the BTC could cause.

The closest resistance is found between the $23,290 and $23,800 area. These are relevant levels if we measure the range between the January 22 low and the February 02 high. We could therefore bet on the return of bitcoin (BTC) to this zone, before falling to 21,000 dollars.

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