Will Bitcoin price test $20,000 again? – 07 February 2023
07 Feb 2023
The four-hour chart of the price of bitcoin displays a distributive pattern that suggests a change in trend.
Start shorting BTC at a small dip of $23,215 with a target price of $21,269 to get started.
A four-hour candlestick close above $23,373 will invalidate this bearish prognosis.
The four-hour chart of the price of bitcoin clearly demonstrates distribution, which suggests the potential for a trend reversal. BTC is the ideal place to construct a local top because it has been consolidating for more than two weeks without any sign of direction.
Bitcoin’s price is approaching a sell-off.
The price of bitcoin has given forth each signal necessary to validate a distribution pattern. After a rise, this pattern forms, which denotes a top, and during which stockholders who had accumulated before or during the upswing sell or otherwise dispose of their assets.
The perfect place to short would be at $24,000 on February 1, when Bitcoin price swept the January 29 swing high at $23,966. This key liquidity run was a pivot point and BTC has shed roughly 6.30% so far.
Another confirmation of a downswing will occur after Bitcoin price breaches the daily support at $22,780 and flips the $22,277 support level into a resistance barrier. In such a case, BTC could slide lower to retest the next daily support at $21,269. In case the selling pressure persists here, the big crypto could tag the four-hour support level at $20,847.
While the pessimistic outlook makes sense from a technical perspective, investors need to note that a flip of the $23,373 hurdle into a support floor will be key to denouncing the bearish bias. This move in Bitcoin price will invalidate the bearish thesis and potentially trigger a run-up to the next key level at $23,496.
A decisive flip of the $25,000 psychological level would be key to continuing this ongoing rally. This high timeframe confirmation in Bitcoin price could trigger a run-up to $30,000.