Bitcoin Holds Above $16,800 As Sellers Threaten Short Selling

Dec 08, 2022 at 10:41 // Price
Coin Idol
Bitcoin is currently trapped between the moving average lines

Bitcoin (BTC) price is falling as selling pressure picks up. The cryptocurrency value hit a low of $16,730 yesterday before beginning to consolidate back above recent support.

Bitcoin price long term forecast: bearish

Buyers were unable to maintain positive momentum above $17,436 resistance, leading to the current decline. A low of $16,500 will be reached by Bitcoin on the downside. Bitcoin is currently trapped between the moving average lines. If sellers break below the 21-day line SMA, selling pressure could continue. The cryptocurrency will first fall to its last low, which was above $16,000. The decline will then continue until it reaches a low of $15,588. However, Bitcoin will continue to move in a range between the moving average lines if the 21-day line holds as support. At the time of writing, it is still circling above support at $16,800 

Bitcoin indicator display 

The Relative Strength Index for the 14 period is at 33, and as it approaches the oversold area of the market, Bitcoin is in downtrend territory. When the price bars are between the moving average lines, Bitcoin will continue to move in a range. Bitcoin price is in a bearish momentum below the stochastic level of 80 on the daily basis.

BTCUSD(Weekly Chart) - December 8.22.jpg

Technical indicators 

Key resistance levels - $30,000 and $35,000

Key support levels - $20,000 and $15,000

What is the next direction for BTC/USD? 

Bitcoin (BTC) has been moving lower since the rejection of the price at $17,436. Right now, sellers are ready to break below the 21-day line SMA. As long as the moving average lines are not broken, the movement will be within the trading range.

BTCUSD(Daily Chart) - December 8.22.jpg

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 research before investing in funds.

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