Bitcoin: Future Direction Hinges on $23,130

Bitcoin has been sideways for the last 93 hours following Thursday’s selloff.

While BTC is holding above the January trend line at $22,000, it’s currently trading below two key levels.

The first is $22,600, which has been a factor for Bitcoin since closing above it on January 20th.

It’s serving as resistance this week and will take a daily close above to confirm a bullish reclaim.

The second more significant level that Bitcoin is trading below is $23,130.

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 time frames.

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.

Alternatively, if BTC bulls can reclaim $22,600 and $23,130 in the coming days, we may finally see it take out the $25,200 equal highs.

But the jury remains out, hence the sideways action since Friday.