Bitcoin Price Falls Sharply As It Fears Another Loss Over $40,000

Jan 16, 2024 at 16:02 // Price
Coin Idol

The price of Bitcoin (BTC) has fallen as the current rally ends at a high of $49,048. Bitcoin price analysis by

Bitcoin price long-term forecast: bearish

Buyers have been unable to keep the price at the psychological $50,000 mark. On January 11, Bitcoin fell well above the $45,500 support level before settling above it. Nonetheless, selling pressure resumed the next day and broke below the moving average lines. This shows that the current rally is over as Bitcoin is trading in the downtrend zone.

On January 12, the BTC price fell above the support level of $41,500 but consolidated above it. On the upside, buyers are desperately trying to hold the price above the 50-day SMA but are being rebuffed. The current BTC/USD price stands at $42.935 at the time of writing. The uptrend is currently rejected at the high of $43,400 and the 50-day SMA. However, if Bitcoin is rejected at its recent high, it could fall even further. The market will continue to fall above the psychological price threshold of $40,000.

Bitcoin indicator reading

Bitcoin has slipped into the downtrend zone with the price bars remaining below the moving average lines. The largest cryptocurrency is expected to fall further as it remains in a downtrend zone. Nonetheless, the formation of doji candlesticks will limit price movement as Bitcoin begins a move above its current support.

Technical indicators:

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

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

BTCUSD_(Daily Chart) – Jan.16.jpg

What is the next direction for BTC/USD?

The largest cryptocurrency has been falling since January 12 and is now holding above the $42,500 level. Bitcoin fell to a low of $41,509 before recovering. The digital asset has traded between $41,500 and $43,400 over the past five days. The cryptocurrency will perform once the current levels are broken.

BTCUSD_(4-Hour Chart) – Jan.16.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 Readers should do the research before investing in funds.

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