Bitcoin (BTC) has held steady above the $16,000 support level. Since the price rally on December 20, price action has remained consistent below the $17,000 level and above the $16,000 support.
On December 22, sellers pushed the price to a low of $16,588, but the bulls struck. The next day, buyers pushed the BTC price to a high of $16,966, but were beaten back by the $17,000 level. After the recent price war, the BTC price was characterised by small candlesticks called doji. These candlesticks indicate that buyers and sellers disagree on the direction of the market. As a result, the BTC price will remain in a trading range above the $16,000 support. Today, the BTC price is rejected at the 50-day simple moving average (SMA). If the price falls below the $16,000 support, it will drop to a low of $15,588. Likewise, a rally will drive bitcoin to a high of $18,000.
The Relative Strength Index is currently at 47, with the RSI unchanged as the market consolidates above the $16,000 support level. The price bars are below the moving average lines, indicating that the cryptocurrency value is likely to fall. The horizontal slope of the moving average lines indicates a movement within a certain range. Bitcoin is in a downtrend on the 4-hour chart and is below the 80 level on the daily Stochastic.
Key resistance levels - $30,000 and $35,000
Key support levels - $20,000 and $15,000
Bitcoin (BTC) is trading sideways above the $16,000 support level. Bitcoin is consolidating above the current support on the 4-hour chart, with small candlesticks. These candlesticks are responsible for the current price movement.
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. Readers should do their research before investing in funds.