Bitcoin Surges Ahead as It Poises to Revisit the $24,000 Overhead Resistance

Bitcoin (BTC) price is developing positively after the recent rise. Buyers broke through the resistance at $20,540 and rose above the moving average lines.

The largest cryptocurrency is on track to retest or break through resistance at $24,000 if the current upward momentum continues. At the time of writing, BTC/USD is trading at $22,230. In the previous price action, Bitcoin was rejected at the $22,000 resistance zone. 

On the upside, Bitcoin will rise and retarget the next resistances at $24,000 and $25,200 if the bullish momentum continues above the $22,000 high. The largest cryptocurrency will resume its bullish momentum once buyers cross the hurdles at $24,000 and $25,205. This will catapult Bitcoin to the high of $31,775 or $32,503. The bullish scenario will be invalidated if buyers fail to break through the $24,000 and $25,205 resistances. This means that Bitcoin will decline and move back to a range between $18,675 and $24,000. 

Bitcoin indicator reading

Bitcoin is at level 60 of the Relative Strength Index for period 14. The price of BTC is in the uptrend zone due to the recent price increase. Bitcoin will rise as long as the price bars are above the moving average lines. It is above the 80% area of the daily stochastic. This indicates that the cryptocurrency has reached the overbought area of the market. Another argument is that an overbought condition in a trending market may not last. The 21-day line SMA and the 50-day line SMA are inclined horizontally, indicating the previous sideways movement.

Technical indicator  

Key Resistance Zones: $30,000, $35,000, $40,000

Key Support Zones: $25,000, $20,000, $15,000 

What is the next direction for BTC? 

Bitcoin has resumed its uptrend after a price rally. The price bars of the cryptocurrency are above the moving average lines, which indicates further upward movement of the cryptocurrency. However, further upside is doubtful as Bitcoin is trading in the overbought region.

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 own research before investing in funds.

Source: Read Full Article