Bitcoin Collapses, But Regains Strength Above $22,600 Support

Feb 06, 2023 at 10:08 // Price
Coin Idol
Bitcoin is currently regaining strength above the $22,600 support

Bitcoin (BTC) price is bearish after being rejected at $24,240.

Bitcoin price long-term forecast: bullish

Buyers had previously pushed Bitcoin above $24,000, but were unable to sustain upward momentum beyond that level. Consequently, cryptocurrency prices have fallen over the past five days. Bitcoin has dipped below the moving average lines, reaching a low of $22,643. If the price stays above the moving average lines, the upward momentum will resume.

Bitcoin will likely be bought up to reach its previous high of $24,000. The previous price action broke through resistance at $24,000 but was immediately met with selling pressure. However, the downtrend will resume when the cryptocurrency price breaks the moving average lines. Bitcoin will then fall even further and reach its previous low of $21,250. At the time of writing, Bitcoin is currently in a loop above the $22,000 support.

Bitcoin indicator display

For period 14, Bitcoin is at level 60 on the Relative Strength Index. Following the retracement, the bitcoin value is currently trading in the uptrend zone. The fact that the price bars are still above the moving average lines suggests that Bitcoin will continue to rise. The BTC price has fallen below the 20 level of the stochastic on the daily chart.

BTCUSD(Daily Chart) - February 6.23.jpg

Technical indicators:

Key resistance levels - $30,000 and $35,000

Key support levels - $20,000 and $15,000

What is the next direction for BTC/USD?

Bearish fatigue has been reached in the current price slide. The cryptocurrency is currently regaining strength above the $22,600 support. The price action is characterized by doji candlesticks that slow down the price movement. The cryptocurrency is now trading in the oversold zone of the market.

BTCUSD( 4 Hour Chart) - February 6.23.jpg

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.

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