Bitcoin on the Edge: Analyst Warns Traders to Stay Alert as BTC Lingers Below Critical Level

On Tuesday, Federal Reserve Chair Jerome Powell hinted at future interest rate hikes for the markets, which affected the market and will continue to influence its direction through the weekend.

As of the time of writing, the cryptocurrency market has not responded right away. The price of one bitcoin was still fluctuating between $22,000 and $22,100, currently facing a key support area at $21,000 as the rise has stopped, and the price has been experiencing some dips.

The price of Bitcoin started to downturn after causing a significant swing to $25,000. After an unexpected downward movement, the price approached the lower limit at $22,000 and started to consolidate. Bitcoin is currently facing a substantial support area between the $21,000 main support level.

A popular cryptocurrency analyst warns Bitcoin (BTC) traders that bears will likely prevail as long as the cryptocurrency trades below a significant resistance level. According to a recent blog article by cryptocurrency analyst Justin Bennett, Bitcoin’s future direction depends on whether it can retake the crucial resistance level at $23,130.

“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.”

Bennett believes that BTC bulls can rely on a few support levels since Bitcoin is now trading below the important price level. He also added that there is nothing that will stop Bitcoin from reaching its all-time high of $25,200 once the bulls stage a rebound and take out the $23,130 level.

“The January close, the February open and close, and the March open make $23,130 an immensely significant level for Bitcoin. Traders must be careful while Bitcoin trades below that level on the higher timeframes.”