Bitcoin Holds Above $16,000, But Is Poised For A Price Spike Or Breakout

Jan 02, 2023 at 11:32 // Price
Coin Idol
Bitcoin is rising as it approaches the overbought area

Bitcoin (BTC) price has held above the $16,000 support level after the price decline on December 28. Doji candlesticks have caused the price movement to remain unchanged.

Bitcoin price long term forecast: bearish

The presence of small-bodied unresolved candles has forced the largest cryptocurrency to trade in a range since November 9. These candlesticks show that there is uncertainty among traders about the market direction. However, if the consolidation continues above the current support, Bitcoin will see a price rally or breakout. For example, if the bitcoin price rises, it will cross the moving average lines and the $17,000 resistance level. The uptrend will continue to the high of $18,000. Bitcoin is currently consolidating above the $16,000 level.

Bitcoin indicator display 

As the cryptocurrency has been trading at the 45 level of the Relative Strength Index for 14 months, the RSI has not changed. Bitcoin is in a bearish trend zone and could continue to fall. Bitcoin is likely to decline as the price bars are below the moving average lines. The trend can be seen in the horizontal slope of the moving average lines. Above the daily stochastic threshold of 80, Bitcoin is moving in a bullish direction. It has now entered the overbought zone, which attracts sellers.

BTCUSD(Daily Chart) - January 2.23.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? 

Currently, Bitcoin (BTC) is rising as it approaches the overbought area. Sellers are expected to enter the overbought area to drive prices lower. If sellers emerge, the sideways movement will continue.

BTCUSD(4 Hour Chart) - January 2.23.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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