The price of Bitcoin has been hovering around the same price level (+-$23,000) for a few days now. This is a significant improvement from the price two months ago when BTC was worth around $17,000, but is there room for further gains? Bitcoin is currently going through a tough time.
Small resistance, big problems?
This is best seen on the 4-hour chart, but first let’s look at the “big picture”: the monthly chart. The reason I include this chart is that the price levels are most important during this period. Here you see 3 blue zones that have the most influence on the route.
The coin is currently between the middle and blue zones. The middle zone is currently serving as support (around $18,500) and the upper zone as resistance ($29,000). Bitcoin is right in the middle, so it’s still a bit of a test to see what the price will do. A fall to that $18,500 is a hefty -20%.
However, we can already read something else in the graph above. In July 2022, Bitcoin also made resistance (the orange line). This is not as important as the blue zones, but this is what BTC is currently struggling with. As you can see, January’s monthly candle closed just short of where it should have led to more positive price action (probably around $29,000).
suffocates
There were too many people selling their bitcoins around that orange line ($23,300) for the price not to break all at once. To analyze this further, let’s use the 4-hour chart. Here we can see that fight a little better.
On this map you see the blue zone (the support) and the orange line. Here you can better see Bitcoin trying to make some sort of spike. It doesn’t necessarily look like BTC’s rate will continue here. With the previous 4-hour candle, the coin made another attempt, but it was in vain.
To really make a big bang, not a 4-hour candle, but a weekly or monthly candle should close above $23,300. If so, I would take this as confirmation to proceed to the upper blue zone. Until then we have to be careful and there is a good chance that after such a beautiful January we will also fall behind a bit.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
