Bitcoin (BTC) price continues to move in a downward correction. The upside keeps bumping up against rejection at the $49,600 high.
The selling pressure is easing at the $45,500 price level. In other words, the cryptocurrency is trading between $45,500 and $50,000. Today, Bitcoin is falling after rejection at the resistance level of $49,600.
If the bears manage to break the support at $45,500, the sellers will drop Bitcoin to the low of $41,634. The crypto price has already fallen to a low of $41,634 during the December 4 slump. On the other hand, if Bitcoin rallies above the current support, the market will rally above $50,000. The bullish momentum will extend to the high at $54,000. Meanwhile, BTC/USD has fallen to $48,535 as of press time.
Bitcoin indicator reading
Bitcoin is at level 43 on the Relative Strength Index for period 14. The cryptocurrency is still trading in the bearish trend zone. A break above $50,000 resistance will take Bitcoin into the bullish trend zone. Bitcoin price has fallen below the 20% area of the daily stochastic. This suggests that selling pressure has reached bearish exhaustion. The moving averages of the 21-day line and the 50-day line are leaning south.
Technical indicators:
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $60,000 and $55,000
What is the next direction for BTC?
Currently hovering between $45,500 and $50,000, Bitcoin is currently sloping downwards. Meanwhile, the downtrend from December 22 has a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that BTC will fall to the 1.618 Fibonacci extension level or $47,680.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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