The Bitcoin (BTC) price is still trending favorably despite trading in a narrow range. Bitcoin price analysis by Coinidol.com.
The largest cryptocurrency is trading above the 21-day simple moving average but below the $44,700 level. Resistance at $44,000 has further slowed the upward movement. On December 26, the bears dropped below the 21-day simple moving average while the bulls bought the dips. BTC price has recovered above the 21-day SMA but remains below the $44,700 level. The uptrend that began on December 27 was short-lived as Bitcoin turned lower at the $44,000 level.
Bitcoin stalled around the $44,000 resistance level. Once above the $44,700 resistance, Bitcoin will enter a bullish trend zone. The market will reach a high of $48,000. Bitcoin is currently in danger of falling as it is trading in a narrow range. The largest cryptocurrency will fall if the bears break above the 21-day SMA and the negative momentum continues. Bitcoin will fall above the 50-day simple moving average (SMA) or the low of $40,400.
BTC has consistently traded above the 21-day SMA to avoid a dip to the downside. The bears are currently trying to break the 21-day SMA. If the bears succeed, the current rally will come to an end. Selling pressure has currently eased above the moving average lines. This indicates that the sideways trend will continue.
Key resistance levels – $35,000 and $40,000
Key support levels – $30,000 and $25,000
The sideways trend could continue if the price returns above the moving average lines. Bitcoin is currently trading in a limited range between $41,600 and $44,000. Since December 20, the barrier at $44,000 has stopped the upward movement. Bitcoin is at risk of a decline if it fails to break through the $44,700 resistance level.
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.