Bitcoin Establishes Positive Momentum But Struggles Below $23,000 High

Today's Bitcoin (BTC) price reached a high of $22.698 after three days of market recovery.

Bitcoin price long-term forecast: bullish

Bulls bought the price losses after the cryptocurrency price initially violated the important support level of $20,000. Price rallies occur when the bitcoin price breaks the crucial support a second time. The positive momentum strengthens as buyers try to keep the price above the moving average lines. Bitcoin price will regain its previous high of $24,000 if it rises above the moving average lines or the $23,000 level. The uptrend will continue until a high of $25,000 is reached. Bitcoin will be forced to move below the moving average lines if buyers are unable to keep the price above them. In other words, Bitcoin will move in a range between $21,500 and $24,000.

Bitcoin indicator display

Bitcoin is at level 50 of the Relative Strength Index for period 14. The price of Bitcoin has reached its equilibrium level. Bitcoin price has reached its equilibrium level when supply and demand are equal. Although it is below the moving average, the price bars are challenging the moving average lines again. Bitcoin can rise once the price reaches equilibrium. The bitcoin market has reached the “overbought” status. This is higher than the 80 level of the daily stochastic.

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?

The 4-hour chart of Bitcoin shows that the price has built a positive momentum again by rising above the moving average lines. Bitcoin price has fallen below the recent high after a setback. The price will move within a trading range if it returns above the $21,500 support level. On the other hand, selling pressure will increase if the price falls below the $21,500 support.

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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