The price of Bitcoin (BTC) has fallen below the moving average lines but remains above $40,500.
On January 16, Bitcoin corrected higher before being rejected at the 50-day SMA. Selling pressure on Bitcoin has picked up again as it regained its current support level of $41,500. The cryptocurrency fell sharply to $40,704 on January 18, 2024, but then recovered above the current support level. The price indication predicts a possible decline and trend reversal of the cryptocurrency. In the price decline on January 12, Bitcoin experienced an upward correction with a candlestick body testing the 78.6% Fibonacci retracement line. The correction predicts that BTC will fall but reverse at the 1.272 Fibonacci extension or $39,722.50. Meanwhile, the BTC price is approaching the psychological threshold of $40,000.
The largest cryptocurrency has started a downtrend as the price bars remain below the moving average lines. The downtrend will continue as long as the price bars are below the moving average lines. In addition, the price movement has slowed down due to the emergence of doji candlesticks.
Key resistance levels – $35,000 and $40,000
Key support levels – $30,000 and $25,000
On the 4-hour chart, Bitcoin has fallen below the moving average lines but is still above the support at $40,770. The moving average lines, or resistance at $42,200, have provided resistance to the uptrend. On the downside, selling pressure will increase again if the price falls below the current support at $40,770.
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.