Bitcoin Faces Rejection At $23,350 As Selling Pressure Returns

Feb 09, 2023 at 11:19 // Price
Coin Idol
Selling pressure on Bitcoin has returned

Bitcoin (BTC) is losing value as it falls below the 21-day simple moving average (SMA).

Bitcoin price long term forecast: bullish

After the rejection on February 2, selling pressure outweighed buying pressure at the $24,000 resistance level. Buyers started to rally on February 7, but encountered further selling pressure at the $23,350 high. The BTC price has fallen between the moving average lines, suggesting that the cryptocurrency might be moving within a certain range. Sellers will try to push Bitcoin below the $21,300 support and to the next support level. Between the moving average lines, the price of BTC is likely to fluctuate. However, it is more likely that buyers will protect the area between $21,300 and the psychological price threshold of $20,000 than any other price area. In other words, the downtrend will resume if the bears break below the 50-day line SMA.

Bitcoin indicator display

Bitcoin is approaching the Relative Strength Index level 56 for the period 14 and falling. Although it is still in an uptrend, the price is steadily dropping. The fact that the price bars are between the moving average lines indicates a potential range bound move. On the shorter time scale, the BTC price is below the 20 level of the daily stochastic. This suggests that the selling pressure on the downside has been exhausted.

BTCUSD(Daily Chart) - February 9.23.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?

With buyers unable to overcome resistance at $24,000, selling pressure on Bitcoin has returned. Bitcoin price is currently holding above the $22,600 support level, and if the price falls below the $22,000 support, the selling pressure could increase again. On the other hand, Bitcoin will resume a positive trend if the price of BTC rises back above the existing support.

BTCUSD(4 Hourb Chart) - February 9.23.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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