Bitcoin (BTC) price is trading above the moving average lines and support at $42,550.
The largest cryptocurrency is trading slightly above its current support. Doji candlesticks have returned above the moving average lines. The BTC price is fluctuating slightly above and below the 50-day moving average line. On January 29, the BTC price broke through the moving average lines but was unable to maintain its positive momentum.
The cryptocurrency has recovered above the 21-day SMA support and resumed consolidation. Bitcoin will resume its positive trend if buyers keep the price above the upper resistance of $44,000 and the upside momentum continues. The cryptocurrency will test its previous high of $47,000. On the downside, buyers are defending the 21-day SMA or support at $42,550. If this support is breached, Bitcoin will fall below the psychological price of $40,000.00.
The price of BTC is stagnating above the 21-day SMA and fluctuating below and above the 50-day SMA. The return of the Doji candlesticks has caused the price action to remain steady. Bitcoin is likely to fluctuate for a few more days as it remains above the 21-day SMA support. The small-scale indecisive candlesticks are slowing down the price movement.
Key resistance levels – $35,000 and $40,000
Key support levels – $30,000 and $25,000
With the formation of doji candlesticks, Bitcoin has started to consolidate above its current support level of $42,550. On the 4-hour chart, Bitcoin is consolidating in a narrow range of $42,300 to $43,600. The dominance of the candlesticks indicates traders' disinterest in the direction of the market.
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.