Bitcoin Loses Momentum: A Potential Correction on the Horizon
Bitcoin has been losing its bullish momentum lately; let's see what comes next!
Bullish Momentum Fading Away
Bitcoin has been in the headlines for years now. Its ups and downs and volatile price fluctuations make it one of the most closely watched assets in the financial world.
Recently, Bitcoin made a minor breakout of the $28,000 resistance after a ranging period. However, the breakout stopped short of reaching the $34,000 resistance, and it doesn't appear to have the strength to continue its route to $34,000, which may suggest that the bullish momentum is fading away.
The price has been mostly ranging before the breakout, and the volume has been dwindling. Usually, trends tend to change when an asset starts ranging and loses volume, which is what is happening to Bitcoin right now. Therefore, we may see a correction in the short term.
Support Levels for Bitcoin: If a correction indeed occurs, we have the $25,000 and the $21,500 levels ready to act as support for BTC. These levels have been significant in the past, and we can expect them to be important again if the price of Bitcoin starts to fall.
Of course, it's impossible to predict with certainty what will happen in the market, but it's always good to have some support levels in mind.
Bottom Line: Bitcoin's recent minor breakout may have been a false signal, as it doesn't appear to have the strength to continue its upward trajectory. The ranging period and dwindling volume indicate that Bitcoin's bullish momentum may be fading away, potentially leading to a correction in the short term.
If a correction does occur, we have the $25,000 and the $21,500 levels ready to act as support for BTC.
