Bitcoin Braces for Correction: Key Levels to Watch for a Dip-Buying Opportunity
In the first half of the week, Bitcoin held onto the $51,700 support, a level we've been monitoring since February 15.
However, as of yesterday, there are signs that the buying support at this price has weakened.
The cryptocurrency is currently in the second phase of consolidation after the initial February surge. The price action was similar to when it was in the $42,500 — $43,700 range in the first week of February, with a pause in the uptrend on February 15.
In this article, we will assess the cryptocurrency's situation and focus on key trade levels to keep an eye on.
During the past week, Bitcoin tested levels around $52,000, encountering resistance at $52,250.
Despite buyers successfully defending the $51,700 support, the BTC price has retraced towards the $51,000 mark as selling pressure intensified since yesterday.
Analyzing short-term price movements reveals an intermediate support at $50,700. If there's a daily close below this level, it might trigger a correction, potentially bringing Bitcoin down to around $49,500, the next support.
After losing this support, the next potential stop is around $47,300.
Despite increased selling pressure, a resurgence of buyers around the $50,700 zone could lead to a new short wave towards $52,800.
An upward breakout might continue the short-term upward trend up to $55,000, with initial resistance seen at $53,100.
Examining the daily chart, Bitcoin entered overbought conditions in February according to the Stochastic RSI. The recent bearish trading suggests a short-term correction.
The support point at $50,700, corresponding to Fib 0.144 from the last rise, gains significance.
The uptrend, fueled by ETF purchases, has slowed due to declining demand. Blockchain data indicates
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