BTC correction far from over amid weakening technical levels

February 23rd, 2021

Bitcoin is holding slightly above $52,000 on Tuesday towards the end of the Asian session. The flagship cryptocurrency dipped under $50,000 on Monday and retested support around $46,000. The rejection from the all-time high of $58,400 on Coinbase cut short the mission to hit levels above $60,000.

At the time of writing, BTC is trading below the ascending parallel trendline midline support. The upside is also limited under the 50 Simple Moving Average on the 4-hour chart. If bulls fail to claim this level as support, Bitcoin’s short-term technical picture will continue to worsen.

Meanwhile, the Moving Average Convergence Divergence (MACD) falls towards the mean line, which is a bearish signal. Besides, the gap made by the MACD line (blue) under the signal line suggests that Bitcoin’s least resistance path is downwards.

On the downside, support at $52,000 might not be healthy but is expected to hold if bulls are to place the bellwether cryptocurrency back on the trajectory toward $60,000. However, if it fails to maintain, the 100 SMA on the 4-hour chart is in line to provide support at $49,000.

BTC/USD 4-hour chart

Consequently, the ascending parallel channel’s middle boundary will protect Bitcoin from diving under the recently confirmed support at $46,000. If push comes to shove, $44,000 and $40,000 are in place to keep BTC afloat.

Recovery to $60,000 will come into the picture soon if Bitcoin closes the day above the 50 SMA and the channel’s middle level. A break above $60,000 will serve as confirmation that Bitcoin will continue to close in on $100,000.

Bitcoin intraday levels

Spot rate: $51,874

Relative change: -2,164

Percentage change: -4%

Trend: Bearish

Volatility: Growing

The original post Bitcoin Price Prediction: BTC correction far from over amid weakening technical levels.