of Bitcoin (BTC) price. returns under $21,000. The cryptocurrency failed to clear a resistance zone between $21,000-$22,000. A strong correction with a possible retest of key levels below $20,000 cannot be ruled out.
A peak against a slowdown in inflation for the price of Bitcoin
Bitcoin price rises to $21,632 and falls to $20,435 on Bitfinex today, January 18, 2023. Cryptocurrency trades at $20,782 at the time of writing this article. Its price is currently recording a daily loss of 1.91%.
Bitcoin has struck again this $21,300-$21,575 resistance zonewhile the Bureau of Labor Statistics released encouraging figures for inflation in the United States.
The Producer Price Index (PPI) fell by 0.5% in December. The founder of the trading company Eight, Michaël van de Poppe, pointed out that “PPI remains at the level of 6.2%, while the forecast was 6.8%”. Core PPI stands at 5.5%, versus forecasts of 5.7%.
On paper, these figures tend to confirm the fact that the US Federal Reserve (FED) should not more aggressive growth Federal funds rate to control inflation.
Towards a retest of levels just below $20,000?
Although Bitcoin continued to rise and hit its highest level in just over four months today, the ensuing rejection also saw it fall below $21,000. The 5-hour chart of Bitcoin price shows that the cryptocurrency may be on the verge of lose Kijun Sen from the Ichimoku (red curve and blue circle) at $20,913, as support.
If this support breaks permanently, the next major support could be at the daily Tenkan Sen (black line), which is currently at to $19,726.
The Threshold of a Supertrend and the Whale Support Level
While the day could end quite sharply in the red after recent strong gains, analysts have pointed to levels well below $20,000 that the bulls should protect or could serve as key support.
Analyst Matthew Hyland has indicated that Bitcoin should stay over $17,900 to keep the cryptocurrency’s 3-day supertrend in the green. This supertrend was “officially revealed in the green” only recently, after more than 13 months in the red.
The analyst clarified that this level to protect, to keep this supertrend in the green, will increase if Bitcoin “reaches new local highs”.
In addition to Matthew Hyland, the Whalemap team is also looking at levels well below $20,000. She shared a graph showing the concentration of whales to $16,190which could serve as a major support in case of strong corrections, which would wipe out the gains of this month of January.
Break on $21,000 climb could it be followed by a return below $20,000 for the Bitcoin price? The coming days will allow us to assess the resilience of these key supports mentioned above in the face of pressure from the bears, who may return in force.
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