Bitcoin (BTC) price resumed its uptrend after several failed attempts to break above the moving average lines.
Buyers held the price above the moving average lines on January 6 when it broke through the $17,000 resistance level. The next resistance level of $18,391 is likely to be reached by the BTC price on the upside. The $18,000 resistance level has already been tested twice since the price collapsed on November 9.
At the time of writing, the price of one bitcoin is at $17,215. The overbought area of the market is where the largest cryptocurrency is currently trading. Therefore, the current uptrend might not last long. The cryptocurrency may rise, but it will be rejected at the next resistance of $18,000. When the resistance at $18,391 is broken, the bitcoin price will start to rise. The current price movement will continue until the bullish scenario is proven wrong in the meantime.
The recent upward correction in the cryptocurrency has pushed the RSI for period 14 to a level of 59. Bitcoin's value is rising because the price bars have remained above the moving average lines. If the price bars fall below the moving average lines, selling pressure will resume. Bitcoin is trading in the overbought zone, above the daily stochastic, which is falling below 80. The current uptrend will likely end when it reaches the overbought zone.
Key resistance levels - $30,000 and $35,000
Key support levels - $20,000 and $15,000
Bitcoin has been in an uptrend since January 4. The price of the cryptocurrency is rising, with higher highs and higher lows. The current uptrend of the market has reached the overbought zone. The uptrend has reached bullish exhaustion. The current uptrend could be broken at $17,322 or $17,566.
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.