Today, BTC price rebounded above $35,000 support as price reached the $36,700 high. This is the second time the coin will be facing rejection at the same high within 48 hours. Before now the coin has been in a downward correction.
After its retest at the $40,000 high, the king coin dropped to $34,020 and resumed upward. The bulls bought the dips as BTC corrected to $36,700 high for the first time. Analysts believe that Bitcoin ought to be rising rather than falling.
The argument is based on Joe Biden’s COVID-19 stimulus package that is worth $1.9 trillion. This will propel Bitcoin to rise. Nevertheless, since January 14, the crypto has been fluctuating between $34,000 and $38,000 price level. The market is adjusting to stabilize above $35,000 support. The BTC price will resume upside momentum if the bulls sustain hold above $35,000 support. However, the crypto will fall if the bears break below the $34,000 support.
BTC price is at level 60 of the Relative Strength Index period 14. The coin has room to rally on the upside. The price action is indicating small body indecisive candlesticks. These candlesticks are either Doji or Spinning tops. The candles are describing the indecision from buyers and sellers as price continues to consolidate above $35,000.
Key Resistance Zones: $40,000, $41,000, $42,000
Key Support Zones: $20,000, $19,000, $18,000
Bitcoin price is stabilizing above $35,000 support. The Fibonacci tool analysis will hold if the psychological price level is broken. On January 8 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement gives the impression that BTC will rise to level 1.618 Fibonacci extensions. That is a high of $48,172.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.