Bitcoin (BTC) has been trading below the $21,500 level since January 14. Buyers are aiming to keep the price above the resistance level to initiate another rally.
Bitcoin reached a high of $21,639 yesterday, but was pushed back. Sellers tried to prevent the resistance level from being broken. If the buyers are successful, the bitcoin price will resume its second phase of upward movement. If the largest cryptocurrency regains its upward momentum, it will reach a high of $22,781 or $25,212. On the other hand, if the buyers fail to overcome the barrier at $21,500, the sellers will take control of the market. The BTC price will fall and return to some of its previous gains. Taking Bitcoin as an example, this means that the price will initially fall to the breakout level of $18,480. Nevertheless, Bitcoin will fall back to the previous range if it loses the support at $18,480. At the time of writing, the price of one Bitcoin is $20,823.
The largest cryptocurrency is still trading in the overbought zone of the market. The RSI is still in the overbought zone, even though it has dropped from its high of 88 to 78. Bitcoin is still vulnerable to a downturn. The moving average lines are much lower than the price bars, indicating a price rise. Bitcoin is currently moving below the daily stochastic threshold of 30, which is bearish.
Key resistance levels - $30,000 and $35,000
Key support levels - $20,000 and $15,000
On the 4-hour chart, the BTC price has declined and is moving below the 21-day line SMA, but above the 50-day line SMA. This suggests that the Bitcoin price will be forced to move in a range between the moving average lines. However, Bitcoin will not move until the moving average lines are broken.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing in funds.