The Bitcoin (BTC) price is moving sideways and continues to encounter resistance at the high of $44,000. On January 2, BTC reaches $45,650.
The largest cryptocurrency has fallen below the 21-day SMA twice and is currently above the 50-day SMA. Bitcoin will rise if the price breaks above the 21-day simple moving average and returns to the previous high of $44,700.
On the other hand, Bitcoin is at risk of falling if it fails to break above the 21-day SMA. If buyers fail to sustain the price above the 21-day SMA, the crypto asset will fall above the 50-day SMA or the $40,400 floor.
Meanwhile, the Bitcoin price is trading in the middle of the moving average lines. At the time of writing, it is worth $45,650.
As Coinidol.com reported before, since December 26, Bitcoin has been trapped between the moving average lines. The cryptocurrency value will be forced to move between the moving average lines for a few days. Despite the sideways trend, the ascending moving average lines are pointing north.
Key resistance levels – $35,000 and $40,000
Key support levels – $30,000 and $25,000
After the breakdown of the uptrend on December 5, Bitcoin has maintained its upward momentum by staying above the psychological price barrier of $40,000.
The Bitcoin price is currently fluctuating between $41,000 and $44,000, with a long candlestick tail above the lower price range characterising the price action. The extended tail of the candlestick indicates strong support at a lower price level.
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 the research before investing in funds.