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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 a crucial buy signal on the 4-hour chart for Bitcoin. According to Martinez, the TD Sequential indicator on the 4-hour chart is displaying a major buying opportunity at the current time and as a consequence of this, the analyst believes that there is a possibility for the BTC price to go back into the zone of $23,500; even further breach the $25K level if other macroeconomic factors remain positive. For the unaware, TD (Tom Denmark) Sequential, which is an instrumental tool designed to identify the exact time of trend exhaustion & price reversal.
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. 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. D
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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