Bitcoin Trades In A Range, But Risks A Drop To A Low Of $20,000

Jan 16, 2023 at 10:52 // Price
Coin Idol
Bitcoin price is currently fluctuating within a small range between $20,700 and $21,400

After the retracement, Bitcoin (BTC) retested the $21,000 resistance zone. The largest cryptocurrency is currently fluctuating only slightly between $20,700 and $21,400.

Bitcoin price long-term forecast: bullish

The BTC price has rallied above the $20,000 support as the cryptocurrency's uptrend resumed. The resistance area has not yet been breached by the BTC price after three retries. If the resistance at $21,470 is breached, bitcoin will start another round of upward movement.

The value of Bitcoin will rise to highs between $22,794 and $25,068. On the contrary, if Bitcoin is unable to overcome the resistance at the recent high, the market will move down. The BTC price will fall to a low above the breakout level of $18,391. Bitcoin will be forced to move in a range between $18,000 and $21,000 if it falls and finds support above the $18,000 level. At the time of writing, the price of one bitcoin is $20,811.

Bitcoin indicator display 

At a level of 88 on the Relative Strength Index for period 14, Bitcoin is heavily overbought. If sellers show up in the overbought zone, Bitcoin will fall. The price bars are well above the moving average lines, which indicates that the price is going up. Currently, Bitcoin is in a bearish momentum below the daily stochastic of 80.

BTCUSD(Daily Chart) - January 16.23.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? 

Bitcoin price is currently fluctuating within a small range between $20,700 and $21,400. Once the bears break the $20,000 support, selling pressure will resume. Similarly, if the bullish momentum is maintained above the $21,000 support, the uptrend will resume.

BTCUSD(4 Hour Chart) - January 16.23.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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