The November high is a drag on the current bull run. A corrective movement seems imminent on bitcoin (BTC). The right time to short?
The price of bitcoin (BTC) is approaching a crucial “supply zone”
Yesterday, the price of BTC moved slightly above the November high of $21,480. After that, it experienced a sudden drop. However, this could be likened to a long squeeze for breakout traders. Today calm has set in and the price is slowly recovering from yesterday’s decline. It is currently very close to a supply zone, visible on the daily chart. This is the area between $21,800 and $22,400. This area could initiate a correction towards the nearest support level.
On top of that, if we measure the price range between $25,000 and $15,500, bitcoin (BTC) is also inside the 61.8% and 78.6% Fibonacci levels. What if the rise since January 1 was only a retracement? If that were the case, one would expect the price to break below $15,500. In addition, one can also observe a hidden discrepancy on the RSI. That is, the price makes higher and lower highs, while the RSI makes higher and higher highs. All of these metrics signal an impending correction move in bitcoin.
Take advantage of the impending corrective movement
Indeed, an opportunity is likely to arise for short-term crypto traders. Considering all the bearish signals mentioned above, going short seems interesting. The “supply zone” between $21,800 and $22,400 could serve as an entry point. Then, the $18,500 level can serve as our target since it is a critical support. The second TP 2 target sits below the 2022 low at $15,500.
If the price breaks above $22,400, there is a good chance that bitcoin (BTC) will surpass the August 2022 high. In this case, there will be other opportunities to enter a buy position.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
