Bitcoin (BTC) has continued to move in the right direction despite entering the overbought area of the market.
Bitcoin traded and climbed to a high of $23,812 yesterday, but was stopped out. Had buyers managed to break through the $24,000 resistance, the BTC price would have reached a high of $25,212. As the BTC price fell below the current resistance level, it failed to break through the $24,000 resistance. The cryptocurrency value fell to a low above $22,920 before consolidating again. The BTC price will continue to move in a range below the resistance level. The BTC/USD price has been hovering between $22,300 and $23,000 since January 21. If the bears break below the $22,300 support, the selling pressure will increase and reach the $21,000 support.
The Relative Strength Index for period 14 shows that Bitcoin is in a small retracement at level 79. Bitcoin's overbought area is still present, and a decline is still possible. The price bars are well above the moving average, indicating a potential rise in the value of the cryptocurrency. Below the daily stochastic level of 50, Bitcoin is moving in a bearish direction. The downward momentum is shaky. The moving average lines are currently pointing north.
Key resistance levels - $30,000 and $35,000
Key support levels - $20,000 and $15,000
Being in a range, Bitcoin cannot move above the support line. As buyers try to continue the upward movement above the resistance level, the cryptocurrency asset is trapped in a small range. If buyers manage to break above the resistance at $23,000 and $24,000, Bitcoin will reach the next price level at $25,212.
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.