Bitcoin Price Rises Above Resistance Levels
The price of Bitcoin (BTC) has increased after breaking through the resistance levels of $44,000 and $44,500. The cryptocurrency is currently rising above the 21-day SMA to retest the recent high. If it manages to break the current resistance level, Bitcoin could reach a high of $48,000. However, if buyers fail to sustain the price above the 21-day SMA, Bitcoin would fall and potentially drop below the psychological price threshold of $40,000. Currently, Bitcoin is on the mend with a high of $43,379 at the time of writing.
Bitcoin Indicator Reading
The candle broke below the moving average lines but was quickly bought up by bulls. The long candle tail on January 3 signals strong buying at the lower price level. However, if Bitcoin falls below the 21-day SMA, it may become trapped and its price will fluctuate between the moving average lines.
Technical Indicators:
Key resistance levels – $35,000 and $40,000
Key support levels – $30,000 and $25,000
What’s Next for BTC/USD?
On January 2, Bitcoin rose to around $46,000 before facing rejection and falling to a price range of $41,000 to $44,000. It is likely that the cryptocurrency will continue to fall towards its previous low if it fails to break the rejection at the recent high.
Hot Take: Bitcoin Price Analysis
The price of Bitcoin has recently risen above key resistance levels but faces uncertainty as it tests the recent high. If it breaks through this resistance level, Bitcoin could see further gains and potentially reach $48,000. However, if the price fails to sustain above the 21-day SMA, Bitcoin may fall and test the psychological price threshold of $40,000. Technical indicators suggest key support and resistance levels to watch. The next direction for BTC/USD depends on whether it can overcome the rejection at the recent high.
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