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Technical Analysis for BTCUSD for 31st January 2023

Bitcoin Cools Off After Retest of $24k, is the Bull Run Over?

Past Performance of BTC

The near 50 percent rally from Q4 2022 lows might be coming to an end, reading from the current price performance. Bitcoin prices recoiled from around $24k, sharply reversing January 29 gains and forcing the coin lower. Even though the $22.5k support remains intact, the spike in selling volumes yesterday could point to weakness.

Bitcoin Technical Analysis

The retracement on January 30 comes after momentum tapered. The bearish engulfing bar of yesterday has high trading volumes and is wide-ranging. Before the contraction, there were lower lows relative to the upper BB, forcing prices back to last week's trade range. As it is, traders may look to take profits. Bears could be back in control if BTC breaks below $22.3k, marking last week's range. In that event, BTC may slip to January 20 lows at around $21k.

What to Expect from BTC

The path of least resistance remains northwards. Still, after such gains, a retracement is inevitable. As a result, the odds of BTC falling back to $21k, or lower, remain high. This preview will shift if there are gains above $24k, with expanding volumes reversing yesterday's losses.

Resistance level to watch: $24k

Support level to watch: $22.3k

Disclaimer: Opinions expressed are not investment advice. Do your research.

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