Bitcoin Falls Unexpectedly To $40,383, Bulls Take Advantage Of The Slump

The price of Bitcoin (BTC) rose after breaking through the resistance levels of $44,000 and $44,500. Price analysis by Coinidol.com.

Bitcoin price long-term forecast: bullish

The largest cryptocurrency broke above the $45,920 mark, but was unable to maintain its high pace. Yesterday, Bitcoin fell well below the moving average lines before rising above them again. The cryptocurrency is rising above the 21-day SMA to retest the recent high. If the current resistance level is broken, Bitcoin could reach a high of $48,000.

However, if buyers fail to sustain the price above the 21-day SMA, Bitcoin would fall. On the other hand, if Bitcoin is rejected at the recent high, it will fall above the psychological price threshold of $40,000. Bitcoin fell to a low of $40,383 on January 3, but the bulls bought the dips. Bitcoin is currently on the mend, with a high of $43,379 at the time of writing.

Bitcoin indicator reading

The candle broke below the moving average lines yesterday, but the bulls bought the dips. On January 3, the long candle tail signals strong buying at the lower price level. However, if Bitcoin falls below the 21-day SMA, it will be trapped. Bitcoin's price will fluctuate between the moving average lines.

Technical indicators:

Key resistance levels – $35,000 and $40,000

Key support levels – $30,000 and $25,000

What is the next direction for BTC/USD?

On January 2, Bitcoin rose to the $46,000 area, leading to further rejection, as Coinidol.com reported. The largest cryptocurrency has fallen to a price range of $41,000 to $44,000. The cryptocurrency tends to fall further to its previous low. It is likely to fall when it hits the rejection of the recent high.

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.