Nov 07, 2022
VOT Research Desk
Buyers can gather their thoughts and get ready for the following leg as the price of bitcoin clearly retests the immediate support level.
Bullish implications result from this development, especially if the current foothold holds firm. The price of bitcoin decreased by 3% after reaching a local peak of $21,473 .
After the spectacular upswing of last week, we needed a downswing to let off steam. Investors should anticipate an increase in purchasing pressure when BTC retests the $20,970 support level, pushing it higher.
The Relative Strength Index (RSI), which is currently sitting around the midpoint at 50, is supporting this increase for the major crypto currency.
The bullish and bearish momentums have reset, giving both sides a chance to gain control, according to the RSI’s current position.
The support level described above increases the likelihood that the price of bitcoin will rise and aim for the inefficiency at $22,106.
In an extremely optimistic scenario, BTC might try to retest the psychological milestone of $25,000.
Although the odds are clearly in favour of the bulls, a further rise north of the $20,970 support level is required for the price of bitcoin.
The optimistic view would be thrown out the window and a sell-off would start if the sellers turned the $20,742 footing into a resistance level.
The sharp increase in selling pressure might drive the price of bitcoin to $20,053, where the sell-stop liquidity is located. $19,706 would be a reliable support level that could withstand the approaching bearish momentum.
