The Price of Bitcoin Stays Above $40,000
The price of Bitcoin (BTC) has remained stable above the psychological price level of $40,000, although it has been unable to break through the resistance level of $45,000.
Bitcoin Price Long-Term Forecast: Bullish
Buyers have consistently protected the key support level of $40,000 and the 21-day simple moving average. When Bitcoin fell to a low of $40,508 on December 18, the bears attempted to break a key support level as well as the 21-day simple moving average. The bulls bought the dips as Bitcoin resumed its sideways trend and upward movement. At the time of writing, the BTC price had reached a high of $43,891.
On the upside, buyers are still planning to break through the $45,000 resistance level, which would allow Bitcoin to reach a high of $48,000. In the meantime, the BTC price is trading above the 21-day simple moving average but below the $45,000 high.
Bitcoin Indicator Reading
The bears tested the 21-day SMA support on December 18, but the bulls bought the dips. Had the bears been successful, the current rise would have ended. The 21-day SMA acts as a support line that allows the cryptocurrency to rise. The moving average lines are pointing north, indicating that the market is in an uptrend.
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 remained in a trading range between $40,500 and $45,000 on the 4-hour chart. Bitcoin was in the lower price range on December 18 but withstood a negative move. The bulls have recently made a new high as they struggle to break through the barrier.
It was reported previously that on December 18, the largest cryptocurrency fell to $40,827 after breaking through the 21-day SMA support.
Hot Take: Bitcoin Holds Steady Above $40,000
The price of Bitcoin has shown stability above the $40,000 level despite facing resistance at $45,000. Buyers have successfully defended the key support level and the 21-day simple moving average. While Bitcoin is currently trading above the moving average, it has yet to break through the $45,000 resistance level. Technical indicators suggest an uptrend with support levels at $30,000 and $25,000 and resistance levels at $35,000 and $40,000. The next direction for BTC/USD remains uncertain as it continues to trade within a range of $40,500 and $45,000.
Cabel Dioli emerges as a luminary seamlessly blending the roles of crypto analyst, dedicated researcher, and editorial artisan. Within the dynamic expanse of digital currencies, Cabel’s insights resound like finely tuned notes, reaching minds with diverse inquisitiveness. His mastery in unraveling intricate threads of crypto intricacies harmonizes effortlessly with his editorial finesse, transforming complexity into a captivating symphony of comprehension. A guiding light for both seasoned trailblazers and curious newcomers venturing into the cryptoverse, Cabel’s insights forge a compass for insightful decision-making amidst the ever-evolving currents of cryptocurrencies. With the artistry of a wordsmith, they craft narratives that enrich the evolving narrative of the crypto cosmos.