The Bitcoin (BTC) price has risen above the $18,000 level after two months of sluggish movement.
Between $16,000 and $18,000, the largest cryptocurrency remained in a range. Buyers and sellers failed to break the fluctuation range. The BTC price is currently testing the $18,000 resistance level for the third time. Bitcoin climbed to $18,380 before retreating. On the upside, Bitcoin will rise to the next resistance at $21,470 if buyers manage to keep the price above $18,000 and the bullish momentum is maintained.
However, this is doubtful as the bitcoin price has entered an overbought area of the market. Since November 10, buyers have failed to sustain a price rise above the $18,000 resistance level. In recent price moves, sellers have managed to drop the BTC price below the moving average lines twice. At the time of writing, the price of one bitcoin is at $18,140. If positive momentum is not maintained above the $18,000 resistance level, the price of the cryptocurrency could fall into the range of fluctuation.
After the recent uptrend, the price of BTC has reached an overbought level. As a result, Bitcoin's relative strength index for the 14 period is at 74. The current uptrend may be coming to an end. The price bars are above the moving average lines, which indicates that the price of the cryptocurrency could rise. The daily stochastic shows that Bitcoin is above the level of 80. This shows that the BTC price has reached bullish fatigue.
Key resistance levels - $30,000 and $35,000
Key support levels - $20,000 and $15,000
After breaking above the moving average lines on January 4, Bitcoin has been in an uptrend ever since. The cryptocurrency is currently above the $18,000 support and in a moderate pullback. The price of BTC is holding on to the current support. If the current support holds, the uptrend could resume; if not, selling pressure will resume.
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.