Bitcoin Trades in Tight Range, Consolidates Above $31,100 Support

BTC price is falling and has broken below the $32,000 support level. Initially, on January 21, Bitcoin reached a low of $30,196 but could not continue the downward movement as price corrected upward.

The bottom line is that since January 4, the bulls have been defending the $30,000 support. The candlesticks have been indicating long tails of various lengths. The long tails indicate that there is strong buying pressure at lower price levels. 

Nevertheless, as buyers were able to defend the current support, they were unable to push the BTC price above the resistance line. On five occasions, buyers pushed the BTC price to the previous highs but were resisted as shown by the resistance line. At each attempt at the resistance line, the BTC price falls to the previous support. Now the sellers have succeeded to sink BTC to the $30,000 support. On the downside, if sellers were able to break the $30,000 support, the crypto will drop to $25,800 low.

Bitcoin indicator reading       

A resistance line is drawn showing the resistance levels of price. The bulls were not able to break the resistance line or sustain the bullish momentum above it. Consequently, the BTC price fell to the previous psychological price level. The upward move is doubtful except these resistance levels are broken. BTC has fallen to level 44 of the Relative Strength Index. It indicates that the crypto is in the downtrend zone and likely to fall.

Key Resistance Zones: $40,000, $41,000, $42,000

Key Support Zones: $20,000, $19,000, $18,000  

What is the next direction for BTC/USD?

The Fibonacci tool has indicated a possible fall and reversal of Bitcoin. On January 21 downtrend; a retraced candle body tested the 78.6 % Fibonacci retracement level. The retracement gives the impression that BTC will fall and reverse at level 1.272 Fibonacci extension. That is a low of $25,809.80.                 

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.