Bitcoin Fluctuates Below $50,000, Set for Upside Momentum

The price of Bitcoin (BTC) is trending positively and breaking out above the psychological $50,000 price level. The cryptocurrency has reached an overbought region of the market.

The BTC price has retraced to the support above $49,650 to resume a new uptrend. Bitcoin is above the 21-day moving average line but below the 50-day moving average line. 

It is also fluctuating below the high at $50,000. If buyers push the BTC price above the 50-day moving average line, the market will rally to $55,000. Bullish momentum will extend to the high at $58,000. A break above the $58,000 high will signal the resumption of upward momentum. On the other hand, if buyers fail to break above the 50-day moving average, Bitcoin will be forced to move between the moving averages. 

Bitcoin indicator reading

BTC price is above the 21-day moving average but below the 50-day line, indicating a possible move within the trading range. Bitcoin is at level 50 on the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. Bitcoin price is above the 75% area of the daily stochastic. It is approaching the overbought zone.

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 a bullish momentum again as the cryptocurrency is retesting the psychological price level of $50,000. The price of BTC is fluctuating below the high of $50,000. Meanwhile, on December 23, a candlestick was testing the 50% Fibonacci retracement level. The retracement suggests that BTC will rise to the 2.0 level of the Fibonacci extension or $55,620.

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.