BTC/USD has finally broken and crossed the psychological price level of $40,000. On February 8, the bulls broke the $40,500 resistance and rallied to a $48,000 high.
The rally reached the $48,000 high but was repelled. The price retraced to $45,000 support but resumed to retest the recent high. Today, the BTC price is fluctuating between $45,000 and $48,000. The market has risen to $46,839 at the time of writing.
However, a further upward move is doubtful with the appearance of a Doji candlestick. The candlestick is describing that the uptrend is losing strength. Buyers are unable to continue with the uptrend as sellers emerge to push prices to the $45,000 support. In the previous price action, the bulls could not sustain the bullish momentum above $40,000 resistance. Consequently, the cryptocurrency fell and has been in a downward correction since January 8.
Bitcoin has risen to level 75 of the Relative Strength Index period 14. The market is now in the overbought region. It is unlikely for a price to rally on the upside as the market reaches the overbought region. However, in a strong trending market, the overbought conditions may not hold.
Major Resistance Levels – $48,000 and $50,000
Major Support Levels – $40,000 and $38,000
Nevertheless, the BTC price is fluctuating in the current price range. On February 9 uptrend; a retraced candle body tested the 88.6 % Fibonacci retracement level. The retracement indicates that BTC will rise to level 1.1129 Fibonacci extensions. That is a high of $49,324.80. The market will continue to rise if the bullish momentum is sustained.
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.