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As the price of bitcoin fell below $23,000 on January 31, well-known crypto analyst Crypto Rover said that the region is a key support. In a recent YouTube video, he shared an analysis of the possible scenarios that could play out in the long term, depending on bitcoin price action.
After highlighting several levels of support from the stats, the analyst determined that a break below would send the price lower towards the next significant support at $21,200.
In addition, the analyst does not exclude a dip below the current support, as he identified the hidden bullish divergence of the Relative Strength Index (RSI) in the early stages of the chart. This divergence is reflected in the 4-hour, 12-hour and daily time frames, which led the expert to suggest that the current pullback may be the expected market consolidation.
However, Bitcoin is still in a bullish trend and Rover confirms this. He noted that a break below current support would provide an opportunity to increase trading margins at a lower level. He said that he will wait for the current level to see what happens in the near future.
Moving Average Convergence Divergence (MACD) forms a clear bearish signal, which further supports the view that it is necessary to wait out the current volatility.
As a result, Rover concluded that a confirmed break below the current support would chart the next support at $21,200, while a rebound from the current support could see Bitcoin break the next resistance at $25,500.
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