Warning From Analyst to Bitcoin Investors: Beware These Levels!

The cryptocurrency market is on the decline today after Federal Reserve Chairman Jerome Powell made alarming statements about interest rates and high inflation. Bitcoin price is currently trading around $22,000, but it fell below that level during the day. This decline has worried many traders.

A closely followed crypto analyst also warned Bitcoin (BTC) traders, noting a critical level.

Crypto strategist Justin Bennett emphasized the importance of the $23,130 level in a new post. According to the analyst, the future direction of Bitcoin depends on whether it retraces this key resistance.

“January closing, February opening and closing, and March opening.

The above makes $23,130 an extremely important level for Bitcoin. Traders should be careful when Bitcoin is trading below this level on higher timeframes.”

So what support levels are emerging for Bitcoin apart from this important resistance level? Bennett says that BTC bulls can count on a few support areas.

Additionally, if Bitcoin bulls make a comeback and take $23,130, it would be possible for the coin to go up to $25,200.

“However, as mentioned above, it is not recommended to short (sell an asset in anticipation of rebuying at a shorting-lower price) when BTC is above the $22,000 January trendline.

A daily close below $22,000 opens the $21,500 support and the $20,800 pool of liquidity.

However, if BTC breaks the liquidity pool at $20,800, there isn’t much to stop a retest of the $20,000 support.”

You can follow the current price action here.

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