Bitcoin price long term forecast: bearish
The price of Bitcoin (BTC) has dropped below the moving average lines, but it is still above $40,500. On January 16, Bitcoin saw a correction before being rejected at the 50-day SMA. Selling pressure on Bitcoin has intensified, and it has now returned to its current support level of $41,500. Although it briefly fell to $40,704 on January 18, it managed to recover above the support level. However, there are indications that the cryptocurrency may experience a decline and a trend reversal. The recent correction suggests that BTC could fall but reverse at the 1.272 Fibonacci extension or $39,722.50. At the same time, it is approaching the psychological threshold of $40,000.
Bitcoin indicator reading
The price bars of Bitcoin remain below the moving average lines, indicating a downtrend. As long as the price bars stay below these lines, the downtrend is likely to continue. Additionally, the price movement has slowed down with the emergence of doji candlesticks.
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 fallen below the moving average lines but remains above the support level at $40,770. The moving average lines have acted as resistance at $42,200 for the uptrend. If the price falls below the current support level, selling pressure is expected to increase once again.
Hot Take: The Bearish Outlook for Bitcoin Price
The price of Bitcoin has dropped below the moving average lines, indicating a bearish trend. Despite briefly recovering above the support level of $41,500, there are indications that BTC may experience a decline and trend reversal. The recent correction suggests a potential reversal point at the 1.272 Fibonacci extension or $39,722.50. With the price approaching the psychological threshold of $40,000, it remains to be seen whether Bitcoin can maintain its current support level. Traders should monitor the moving average lines and the key support and resistance levels to gauge the future direction of BTC/USD.
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