A closely followed crypto analyst is warning Bitcoin (BTC) traders that bears likely have the upper hand as long as the king crypto trades below a crucial resistance area.
In a new blog post, crypto strategist Justin Bennett says that the future direction of Bitcoin depends on whether BTC reclaims the key resistance level at $23,130.
Bennett highlights that $23,130 has been a pivotal area for Bitcoin so far this year.
“It’s the January close, the February open and close, and the March open.
The above makes $23,130 an immensely significant level for Bitcoin.
Traders must be careful while Bitcoin trades below that level on the higher timeframes.”Â
At time of writing, Bitcoin is worth $22,201.
With Bitcoin trading below the analyst’s critical price level, Bennett says that BTC bulls can rely on a couple of support areas.
Should Bitcoin bulls mount a comeback and take out $23,130, Bennett says there’s nothing stopping the king crypto to go all the way up to $25,200.
“However, as mentioned above, shorting BTC while above the $22,000 January trend line is ill-advised.
A daily close below $22,000 would open up $21,500 support and the liquidity pool at $20,800.
However, if BTC takes out the liquidity pool at $20,800, there isn’t much to stop a retest of the $20,000 confluence of support.”Â
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
