level to break – The price of Bitcoin (BTC) leaves the markets in uncertainty, continuing its back and forth on either side of the $23,000. If a bullish continuation is still possible on paper, the dollar could recover and put the cryptocurrency in the red.
Bitcoin price below $23,400
Bitcoin price drops as low as $22,668 on Bitfinex today, February 6, 2023. The cryptocurrency is trading at $22,968 at the time of writing this article. The markets are currently entitled to a doji.
Bitcoin price continues to swing back and forth across $23,000, after it failed to close above the $23,400 resistance last week. He had achieved a fair weekly closing under $23,000.
As Bitcoin price traded at $23,115 today, trader Rekt Capital shared his insights based on this resistance at $23,400. Rekt Capital indicated that if the price of Bitcoin struggled to recover this level, this increase would correspond to a relief rally.
On the other hand, it would not be a temporary bullish rebound, if the price of the cryptocurrency managed to recover this $23,400 and turn it into support.
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The bullish continuation thesis after the shorts
Bitcoin price failed to break above $23,400. So should the markets now expect a relatively long fall in the price of cryptocurrency?
Trading firm founder Michaël van de Poppe gave a rather bullish outlook as Bitcoin traded close to $22,790. He did not rule out the possibility of a bullish rebound from this level – or around the latter more precisely.
The 4-hour Bitcoin price chart that Michaël van de Poppe shared points to resistance at around $23,335 and support at around $22,510, based on the cryptocurrency’s recent swings.
Michaël van de Poppe believes that a bullish break from $23,200 would inevitably lead to the $26,000 – $28,000because the “people are starting to shortest eagerly”.
The dollar as the main obstacle for the price of Bitcoin
Beyond these forecasts, the reality is that traders are therefore waiting for a significant movement, which can make it possible to forecast with more precisionthe next direction.
At this stage, the signal that could be the most convincing to predict a rise or fall in Bitcoin is the dollar. Trader Roman shared a chart of the DXY, while pointing out that it looks like “the dollar is trying to recover its annual uptrend “.
The trader clarified that “this is bad news” for cryptocurrency and stocks, as such a rise in the dollar would imply “ a pullback / continuation of the bear market “.
The bulls have regained hope, but the hardest part is yet to come for the price of Bitcoin. In the very short term, the cryptocurrency must recross $23,400 and turn it into support, to be able to claim a bullish continuation.
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