Bitcoin Is In A Horizontal Trend And Challenges The High At $17,275

Dec 05, 2022 at 14:42 // Price
Coin Idol
Bitcoin will probably continue to move in a horizontal trend for a few more days

Bitcoin (BTC) price has risen after breaking above the $17,275 resistance level. The cryptocurrency is trading in the overbought zone of the market.

Bitcoin price long term forecast: bearish

The current bullish momentum is expected to hit another hurdle at the high of $18,150. However, a break of the following resistance level by buyers argues for a continuation of the upward momentum. Bitcoin is expected to reach the highs of $20,000 and $21,500.

However, further gains in Bitcoin are doubtful as the market is approaching the overbought zone. Meanwhile, the Bitcoin price is capped between the moving average lines. Buyers are driving the BTC price to retest or break through the 50-day simple moving average (SMA). If buyers keep the price above the 50-day simple moving average, Bitcoin will resume its uptrend. BTC/USD will return to a rangebound move between the moving average lines where it will face rejection at the recent high.

Bitcoin indicator display 

For period 14, the Relative Strength Index is at 35, which is a result of Bitcoin's recent rise. On the daily chart, the price bars are back between the moving average lines and resuming the sideways pattern. Bitcoin price has crossed the Stochastic barrier of 80 on the daily chart and has entered the overbought zone.

BTCUSD(Weekly Chart) - December 5.22.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 price of Bitcoin (BTC) is now fluctuating between the moving average lines. When the moving average lines are broken, the price of the cryptocurrency will enter a trend. The current rise is challenged by resistance at the recent high. Bitcoin will probably continue to move in a horizontal trend for a few more days.

BTCUSD(Daily Chart) - December 5.22.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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