Bitcoin Consolidates In Preparation For A Possible Breakout

Feb 23, 2023 at 12:40 // News
Coin Idol
The bullish trend zone is still in effect for Bitcoin

Bitcoin (BTC) price is currently moving in the bullish trend zone after a rally on February 15.

Bitcoin price long-term forecast: bullish

The resistance level at $25,000 was tested three times by the BTC price last week, but the upward momentum did not last. The most recent test took place on February 21, and Bitcoin was rejected at the high of $25,227. Today, the largest cryptocurrency climbed back above the $24,000 support and is now consolidating back above it. Bitcoin (BTC) has been consistently trading above the $24,000 support level since February 15 and is currently near the resistance level. It has been seen that consolidation near the resistance zone increases the probability of a breakout. The resistance at $25,000 will be broken to the upside if the BTC price rises. The upward momentum is expected to extend beyond the psychological $30,000 level. However, if the cryptocurrency price falls below the 21-day line SMA, the upside scenario will become invalid. BTC/USD is trading at $24,406 at the time of writing.

Bitcoin indicator display

 The largest cryptocurrency is currently trading at the 60 level of the Relative Strength Index for the 14 period. It is in the uptrend zone. The price of the cryptocurrency could rise. For Bitcoin to rise, the price bars must be above the moving average lines. In an uptrend, the price of the cryptocurrency also rises above the daily Stochastic value of 40.

BTCUSD(Daily Chart) - February 23.23.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?

The bullish trend zone is still in effect for Bitcoin. To resume the upward momentum, the cryptocurrency needs to overcome another obstacle. Due to the resistance at $25,000, the uptrend has turned into a sideways movement. The uptrend will resume when the resistance at $25,000 is overcome.

BTCUSD(4 Hour Chart) - February 23.23.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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