The price of Bitcoin (BTC) has dropped below the moving average lines but remains above the $38,600 support level.
Long-term forecast for the Bitcoin price: bearish
Since January 11, BTC has been forming lower highs and lower lows. On January 22, the bears pushed the price below $40,000, reaching a low of $39,452. However, the bulls stepped in and bought the dip. Currently, BTC is consolidating above the $39,000 support.
If the current support holds, Bitcoin is likely to trade between $38,600 and $44,000. However, if the support is broken, we may see a further decline with a potential low around $34,500.
Bitcoin indicator display
The BTC price is below the downward sloping moving average lines, indicating a bearish trend. However, there are signs of bearish fatigue as the cryptocurrency bounces above the $38,600 support. The 21-day SMA has crossed below the 50-day SMA, further confirming the downward momentum.
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 experienced a drop to $38,600. According to the price indicator, BTC is expected to decline further before finding support at $39,793 (the 1.272 Fibonacci extension level). Despite volatility and fluctuations around the critical $40,000 level, Bitcoin’s price remains uncertain.
Hot Take: Uncertain Future for Bitcoin Price
The price of Bitcoin has fallen below key moving average lines, indicating a bearish trend. Although there are signs of bearish fatigue and a potential support level around $38,600, the overall market sentiment remains uncertain. BTC’s next direction will depend on whether the current support holds or breaks. Traders should closely monitor key resistance and support levels to determine potential entry or exit points. As always, it is important to exercise caution and perform thorough analysis before making any investment decisions.
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