End of month pressure – The price of Bitcoin (BTC) starts the week with a major correction in its price, after an attack from the $24,000. The bulls now need to push the cryptocurrency back above that key level for tomorrow’s monthly close to absorb the candlesticks of the last six months.
Bitcoin price in daily unit: support around $22,670?
Bitcoin price drops as low as $22,618 on Bitfinex today, January 30, 2023. The cryptocurrency is trading at $22,684 at the time of writing this article. Its price is currently recording a daily loss of 4.47%.
Bitcoin price manages to hold just above the January 20 closing level at $22,672 for now. This green candlestick from January 20 had then allowed the cryptocurrency to recover $22,000 for the first time in about four and a half months.
The chart below shows that, on a daily basis, Bitcoin price is currently trading well below the Tenkan Sen (black line) around the $23,004. Will the bulls be able to bring the cryptocurrency back to around this Tenkan, before the monthly close?
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5-Hour Bitcoin Price: Support to Stop the Fall?
On an even shorter timeframe, the 5-hour chart of the Bitcoin price shows that today’s downside pressure has taken the cryptocurrency below the Tenkan Sen (black line) and Kijun (black line). red).
Bitcoin price is currently trading above the Kumo (cloud) which can act as a support. The Chikou Span (green line) could also find support above a candlestick and the Kijun – as shown by the intersection of the curves and the candlestick in the blue circle.
Absorb the candlesticks of the last four or six months
Bitcoin closed near $23,750 last week, after hitting a low new high in almost 5 months, to $23,962, in the day. The start of this week, just over 24 hours from the monthly close, therefore begins with a strong correction, after what looks like a rejection at levels near $24,000.
As the highlighted trader Rekt Capital, Bitcoin’s January monthly candlestick is currently absorbing the candlesticks of the last four months. If the cryptocurrency manages to close this month above $23,400, then the January candlestick would absorb those of the last six months – in the sense that the price of Bitcoin would close above the monthly open or close level of the previous six months.
The price of Bitcoin has removed the threat of a bear run during this month of January, with its significant gains. The monthly closing level will give, or not, a relatively strong signal as to the probability of a bullish continuation for the month of February.
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