The price of Bitcoin (BTC) has remained stable above the psychological price level of $40,000, although it has been unable to break through the resistance level of $45,000.
Buyers have consistently protected the key support level of $40,000 and the 21-day simple moving average. When Bitcoin fell to a low of $40,508 on December 18, the bears attempted to break a key support level as well as the 21-day simple moving average. The bulls bought the dips as Bitcoin resumed its sideways trend and upward movement. At the time of writing, the BTC price had reached a high of $43,891.
On the upside, buyers are still planning to break through the $45,000 resistance level, which would allow Bitcoin to reach a high of $48,000. In the meantime, the BTC price is trading above the 21-day simple moving average but below the $45,000 high.
The bears tested the 21-day SMA support on December 18, but the bulls bought the dips. Had the bears been successful, the current rise would have ended. The 21-day SMA acts as a support line that allows the cryptocurrency to rise. The moving average lines are pointing north, indicating that the market is in an uptrend.
Key resistance levels – $35,000 and $40,000
Key support levels – $30,000 and $25,000
Bitcoin has remained in a trading range between $40,500 and $45,000 on the 4-hour chart. Bitcoin was in the lower price range on December 18 but withstood a negative move. The bulls have recently made a new high as they struggle to break through the barrier.
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.com. Readers should do their research before investing in funds.