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As Bitcoin price closed below $23,000, the famous YouTube crypto analyst Crypto Rover declares this region is the “key support.” In a recent video, he shared an analysis of the possible scenarios that could play out in the long term, depending on how the Bitcoin price develops.
Highlighting multiple supports from historic data, Rover established that a break below would drive the price down toward the next significant support at $21,200. The last time that Bitcoin was at that price was ten days ago.
HERE ARE MY PRICE TARGETS:https://t.co/mY8YXfMJ1c
— Crypto Rover (@rovercrc) January 31, 2023
Rover mentioned that the four-hour chart was his tool for this particular analysis. According to him, the breakout confirming a downward movement toward the next support will include a close on a four-hour candle below the current support level.
Rover explained that there is another developing scenario that could lead to a breakout below the current support. He identified a hidden bullish Relative Strength Index (RSI) divergence still in the early stages of development. Notably, this divergence reflects on the four-hour, 12-hour, and daily timeframes, leading Rover to suggest that the current pullback may be the consolidation that the market has long awaited.
Bitcoin is still in a bullish trend, and Rover confirms this. He noted that breaking below the current support will offer the opportunity to increase his trading margin at a lower level. He told viewers that he would wait out the current level to see what would happen in the coming moments.
The Moving Average Convergence Divergence (MACD) is developing an acute bearish signal, which further supports Rover’s opinion to wait out the current volatility.
Summarizing his analysis, Rover recounted the multiple trading opportunities setting up, especially on the four-hour chart. A confirmed breakout below the current support will target the next support at $21,200 while bouncing off the current support could see Bitcoin reach the next resistance at $25,500.