Bitcoin Declines Significantly to $46,079 Low as it Resumes a Fresh Uptrend

Bitcoin (BTC) has dropped significantly to a low of $46,079. Today, the upward movement has started as the bulls have bought the dips. The current uptrend has reached the high of $46,958 at the time of writing.

Here is how the price has been trending since the December 4 plunge. During the slump, Bitcoin plunged to a low of $41,634 as bulls bought the dips. Since December 4, BTC/USD has been trading in a tight range between $46,000 and $52,000 price levels. Bitcoin will rally above the moving averages if $52,000 is broken and bullish momentum is maintained.

This will also signal the resumption of an uptrend as Bitcoin will then be out of the downward correction. If buyers are successful and drive Bitcoin above the $58,000 high, upward momentum will resume and Bitcoin will regain the $60,000 psychological price level. Conversely, the bullish scenario will be rendered moot if the bulls fail to break above $52,000 resistance. Bitcoin will continue to move within a certain range.

Bitcoin indicator reading

BTC price is below the 21-day moving average line and the 50-day line, indicating a possible decline. Bitcoin has fallen to level 39 on the Relative Strength Index for period 14. This is due to the recent decline to the downside. Bitcoin price is below the 20% area of the daily stochastic. The market is in the oversold region of the market. There is a tendency for buyers to emerge to push prices higher.

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?

Bitcoin has been in a fluctuation range. The cryptocurrency has been trading between $46,000 and $52,000. Buyers and sellers have failed to break this trading range. Yesterday, the bears failed to break the support at $46,000, while the bulls bought price declines. This suggests that Bitcoin will continue to trade in a narrow range for a few more days.

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.