The Bitcoin price experienced a significant increase in January 2023, and it retained its position above the $23,000 barrier while encountering challenges from macroeconomic factors. As the price of BTC stays solidly at the two-year lows of the bear market at $22,800, another week of triggers could test the fortitude of bulls in the market.
Bitcoin’s Key Resistance
Bitcoin’s price has completed a failed retest of the $23400 level for the second time since August 2022, according to a prominent technical analyst who tweets under the pseudonym Rekt Capital. As a result, $23400 will likely continue to act as a resistance for Bitcoin, mainly if BTC relief happens soon and the flagship cryptocurrency cannot break above it.
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In a recent tweet, he further clarified his opinion on the current pump by stating that it might be a relief rally if the BTC price fails to break back above $23,400 and not if $BTC is able to recapture $23,400 as support. This was in reference to the fact that the recent pump occurred.
Bitcoin Price To Hit $25K?
While speaking on the same line, a key technical indicator has been cited by Ali Martinez as the source for his discovery of a buy signal on the 4-hour chart for Bitcoin. According to Martinez, the TD Sequential indicator on the 4-hour chart is displaying a buy signal at the current time and as a consequence of this, the analyst believes that there is a possibility that the price will go back into the area of $23,500 and over to $25K if other macroeconomic factors remain positive.
However, the expert warns that this signal will be rendered meaningless if Bitcoin is unable to maintain its position above the 100-day exponential moving average (EMA). According to Martinez, a decrease in price to retest the 200 exponential moving average (EMA) is possible in this circumstance. For the unaware, TD (Tom Denmark) Sequential, which is an instrumental tool designed to identify the exact time of trend exhaustion & price reversal.
The observation made by the analyst comes after a price decline in the asset was witnessed over the weekend that was lower than $23,000. Despite the fact that it appears to have found support close to the price point of $22,824, the structure still looks bearish, with resistance located at $22,945. If the price manages to close significantly lower than the current support level, it is possible that a new lower low may be formed.
As things currently stand, the price of Bitcoin moved to $23,082 at the time of composition. And, according to the crypto market tracker published by CoinGape, this results in a growth of 0.95% over the past 1 hour, in contrast to a decline of 0.62% over the last seven days.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
