The price of Bitcoin (BTC) has fallen below the moving average lines but remains above the support level of $38,600.
Long-term forecast for the Bitcoin price: bearish
Since January 11, the price of the cryptocurrency has shown a pattern of lower highs and lower lows. On January 22, the bears broke through the psychological price mark of $40,000, sending Bitcoin to a low of $39,452. The cryptocurrency fell further to a low of $38,572, but the bulls bought the dips. The BTC price has corrected upwards and is consolidating above the $39,000 support.
On the downside, selling pressure has eased as Bitcoin has risen above the $38,600 support. Bitcoin is likely to move in a range between $38,600 and $44,000 if the current support holds. On the other hand, if the current support is broken, Bitcoin could fall further. The market will continue to fall, with a low of $34,500 likely to be reached.
Bitcoin indicator display
The BTC price bars are below the downward sloping moving average lines. The decline has reached bearish fatigue, with the cryptocurrency bouncing above the $38,600 support. Bitcoin has a bearish crossover with the 21-day SMA falling below the 50-day SMA. The moving average lines are trending south, indicating a downturn.
Technical Indicators:
Key resistance levels – $35,000 and $40,000
Key support levels – $30,000 and $25,000
What is the next direction for BTC/USD?
On the 4-hour chart, Bitcoin has lost value after hitting a low of $38,600. According to the price indicator, Bitcoin will fall and then rise again at $39,793, the level of the 1.272 Fibonacci extension. The Bitcoin price recovered from the volatility but continued to fluctuate above the critical $40,000 threshold.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.
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- Source: https://coinidol.com/bitcoin-falls-but-reaches-price-barrier/
