On February 7th, the value of Bitcoin showed an upward trend, as the price experienced a bounce back after almost reaching a crucial support level. The market participants, referred to as bulls, have demonstrated their strength by not accepting this downward move towards the $22,500 mark and instead, they exerted buying pressure which greatly resulted in the rise in price of the cryptocurrency.
This resurgence of the bulls highlights their determination to keep the price of Bitcoin elevated, and it seems they are succeeding in their efforts so far
Bitcoin Rises in value
On Monday, the price of Bitcoin (BTC) showed a decline and reached a low of $22,692.03. However, in today’s trading session, the cryptocurrency rebounded strongly and rose above the $23,000 level. The rapid increase in the price of Bitcoin was evident as it reached an intraday high of $23,119.28.
This resurgence of the cryptocurrency can be attributed to the rejection of the downward move towards a key support point at $22,500 by market participants known as “bitcoin bulls.” Instead of accepting the dip, the bulls demonstrated their confidence in the cryptocurrency by buying it, which ultimately led to an increase in the price. This move by the bulls showcases their determination to keep the price of Bitcoin elevated and maintain its positive momentum in the market.
After five days of continuous losses, Bitcoin (BTC) finally showed a rebound by looking at today’s chart. This losing streak followed a six-month high that was achieved last Thursday.
Moreover, the reversal that happened on Tuesday was in conjunction with the 14-day relative strength index (RSI), which is a commonly used technical analysis tool, bouncing off its floor at 60.00. Currently, the RSI is tracking at 62.04 and appears to be heading toward a potential collision with its ceiling at 68.00. It’s worth noting that the RSI helps traders to identify overbought or oversold conditions in an asset, thus providing them with an idea of when to enter or exit a trade.
Is there support for dips in Bitcoin (BTC)
If the price of bitcoin fails to surpass the resistance level of $23,500, it may trigger another downward correction. In such a scenario, the immediate support to watch for is located near the $23,000 level and the 100-hour simple moving average.
Should the price continue to drop, the next significant support level is situated around $22,800. If the price falls below this level, it could potentially lead to a decline toward the $22,600 zone. Further losses may result in a test of the $22,500 support in the short term.
Final Thoughts
It is important to note that these support and resistance levels are not definite and may be subject to change based on market conditions and other factors. It is always recommended to conduct thorough research and analysis before making any investment decisions
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.
