For the past week, Bitcoin bulls have failed to break above the $24,000 overhead resistance. A successful breakout will catapult the coin to rally above $25,000.
Bitcoin will resume another round of upside momentum. However, buyers were able to defend the $22,000 price level as sellers continue to retest the support level.
On the downside, if the $22,000 support is breached, Bitcoin will decline to $19,500 support. In the meantime, buyers and sellers are in a price tussle in the range-bound zone. It is worthy to note that Bitcoin has been correcting since December 17. Analysts believe that in a strong uptrend, corrections last for about three days. Meanwhile, Bitcoin is trading at $23,177 at the time of writing.
Bitcoin is at level 51 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The crypto is above the 80% range of the daily stochastic. It indicates that the coin is in the overbought region.
Key Resistance Zones: $13,000, $14,000, $15,000
Key Support Zones: $7,000, $6,000, $5,000
The Fibonacci tool has indicated a downward movement of the coin if the current support fails to hold. On December 21 downtrend; a retraced candle body tested the 50 % Fibonacci retracement level. Its retracement indicates that BTC price is likely to fall to level 2.0 Fibonacci extension level. That is a low of $19,567.20.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.