Bitcoin Price Pulls Back As It Hovers Above The $42,000 Support Level

The Bitcoin (BTC) price has stalled after reaching the $45,000 resistance level.

Long-term forecast for the Bitcoin price: bullish

On December 5, the largest cryptocurrency reached a high of $44,488 before falling back. On December 8, Bitcoin was rejected at a high of $44,699 after failing to break above the $45,000 mark.

Today, the Bitcoin price has retreated and found support above the 21-day simple moving average. In other words, at the time of writing, the value of BTC/USD stands at $42,182. Nonetheless, the current upswing is likely to continue as long as it remains above the 21-day SMA. Considering the current retracement, Bitcoin will rise above $47,000 if the current resistance level is broken.

Bitcoin indicator reading

On the 4-hour chart, the cryptocurrency's price bars have slipped below the moving average lines. As a result, Bitcoin could fall even further. On the daily chart, the decline will start when the bears fall below the 21-day SMA support. The bearish momentum will continue above or below the 50-day simple moving average. This means the market will fall to a low of $37,500.

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 is expected to break through the $45,000 resistance level after finding support above the moving average lines. During the break of the uptrend, Bitcoin was forced to trade sideways between the $40,000 and $44,500 price levels. The cryptocurrency is now trading in the middle of its price range.

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 their research before investing in funds.