Bitcoin Price Threatens to Fall as Bears Break Key Support Level
The long-term forecast for Bitcoin price remains bullish, but recent market movements indicate a potential decline. On December 18, the cryptocurrency dropped below the 21-day simple moving average (SMA), reaching $40,827. However, if buyers fail to hold their position above the 21-day SMA, further decline is expected. The negative momentum could extend above the 50-day SMA, with a potential bottom at the $38,600 support level.
Bitcoin’s Potential Trading Range and Projected High
If buyers step in and buy the dips, Bitcoin could trade between the 21-day SMA and the $44,000 level. This would create an opportunity for buyers to push Bitcoin towards the projected high of $48,000. In the meantime, it is likely that Bitcoin will oscillate between the moving average lines for a few days. As of now, one Bitcoin is valued at $41,167.
Bitcoin Indicator Display and Technical Analysis
Currently, the price bar is below the 21-day SMA but above the 50-day SMA after a recent dip. This suggests that Bitcoin may enter a range-bound move as it settles between the moving average lines. The moving average lines have been on an upward trend since the previous dip.
Key Resistance and Support Levels
The key resistance levels for Bitcoin are $35,000 and $40,000, while the key support levels are $30,000 and $25,000.
Predicting BTC/USD’s Next Direction
Bitcoin is currently facing renewed selling pressure and has been trading between $40,500 and $44,000 since December 5. If it falls below the psychological price of $40,000, the selling pressure is expected to intensify. Recent reports indicate that Bitcoin is attempting to retest or break through the $45,000 mark.
Hot Take: Bitcoin Price Threatens to Fall Below Key Support Level
The recent drop below the 21-day SMA support has put Bitcoin at risk of further decline. Buyers need to hold their position above this key level to avoid a downward trend. The potential trading range for Bitcoin lies between the 21-day SMA and the $44,000 level, with a projected high of $48,000. Technical indicators suggest a range-bound move as Bitcoin settles between the moving average lines. However, if selling pressure increases and Bitcoin falls below $40,000, it could experience significant downward momentum.
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