Bitcoin Price Analysis: Current Rally Ends at $49,048
The price of Bitcoin (BTC) has dropped as the recent rally comes to an end, reaching a high of $49,048. However, buyers have struggled to maintain the price above the psychological $50,000 mark. On January 11, Bitcoin fell below the $45,500 support level and continued to decline the next day. This indicates that the current rally is over and Bitcoin is now trading in a downtrend zone.
Bitcoin Price Long-Term Forecast: Bearish
On January 12, the BTC price briefly fell below the support level of $41,500 but managed to consolidate above it. Buyers are attempting to keep the price above the 50-day SMA but have been unsuccessful so far. The current BTC/USD price stands at $42,935. If Bitcoin fails to break its recent high, it could experience further downward movement and fall below the psychological threshold of $40,000.
Bitcoin Indicator Reading
Bitcoin has entered a downtrend zone with price bars remaining below the moving average lines. This suggests that Bitcoin is likely to continue falling. However, the formation of doji candlesticks may limit price movement as Bitcoin finds support and begins to move upwards.
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?
Bitcoin has been declining since January 12 but is currently holding above the $42,500 level. The cryptocurrency has been trading between $41,500 and $43,400 in recent days. It remains to be seen how Bitcoin will perform once it breaks out of this range.
Hot Take: Bitcoin Faces Downtrend as Rally Ends
The recent rally in the price of Bitcoin has come to an end, with the cryptocurrency failing to maintain its position above $50,000. As a result, Bitcoin has entered a downtrend zone and is likely to continue falling. Buyers have struggled to keep the price above key support levels and if Bitcoin fails to break its recent high, it could see further downward movement. Technical indicators suggest that Bitcoin will face resistance at $35,000 and $40,000, while finding support at $30,000 and $25,000. The next direction for BTC/USD remains uncertain as the cryptocurrency trades within a narrow range.
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