Good news from the previous week is that the market is over with a bearish sentiment, in which sense, fundamental news on economic developments does not have such a significant impact on the price of coins. Markets have turned to search for real intrinsic value in coins, which implies at least some relief from the downtrend. During the previous week, FED increased its interest rates by additional 75bps, but also noted that there is no indication that the US economy is in recession, regardless of actual figures. There is a possibility that the FED will slow down with further increases of interest rates with the aim to fight high inflation, which induced further positive reaction from markets.
Bitcoin started the previous week by testing the support line at $20K for another time. This level was holding strongly, so the coin reverted to the up side and short term resistance line at $23K. Market push to the upside was strong, so the coin easily broke this level and headed toward next resistance at $25K. However, the highest weekly level reached was $24.7K, so during the writing of this analysis, the $25K resistance still has not been clearly tested. During the week the RSI was pushed to the level of 63, however, clear overbought market has not been reached, but there is an indication that it might be in the following days. Moving averages of 50 and 200 days continue to slow down their divergence from each other, but there is still no indication that they have started a reversed process.
Current charts are suggesting that there is a clear road toward the $25K resistance line, which BTC might test in the coming days. This is also supported by RSI, which is showing that the market is looking at the overbought side. At this point, there is no clear indication that $25K might be breached to the upside, however, in case of some strong fundamentals, next level to watch would be $27K. On the opposite side, current short term support line stands at $23K, which might be tested in the coming days, with decreased probability that the market could return back to $20K support line.
Bitcoin started the previous week by testing the support line at $20K for another time. This level was holding strongly, so the coin reverted to the up side and short term resistance line at $23K. Market push to the upside was strong, so the coin easily broke this level and headed toward next resistance at $25K. However, the highest weekly level reached was $24.7K, so during the writing of this analysis, the $25K resistance still has not been clearly tested. During the week the RSI was pushed to the level of 63, however, clear overbought market has not been reached, but there is an indication that it might be in the following days. Moving averages of 50 and 200 days continue to slow down their divergence from each other, but there is still no indication that they have started a reversed process.
Current charts are suggesting that there is a clear road toward the $25K resistance line, which BTC might test in the coming days. This is also supported by RSI, which is showing that the market is looking at the overbought side. At this point, there is no clear indication that $25K might be breached to the upside, however, in case of some strong fundamentals, next level to watch would be $27K. On the opposite side, current short term support line stands at $23K, which might be tested in the coming days, with decreased probability that the market could return back to $20K support line.
