Bitcoin Slips Above $40,800 And Faces A Likely Sell-Off

Bitcoin (BTC) price threatens to fall as the bears drop below the 21-day simple moving average. Cryptocurrency price analysis by Coinidol.com.

Long-term forecast for the Bitcoin price: bullish

Today, December 18, the largest cryptocurrency fell to $40,827 after breaking through the 21-day SMA support. Nonetheless, Bitcoin is at risk of a further decline if buyers fail to hold their position above the 21-day SMA. The negative momentum is expected to extend above the 50-day simple moving average, implying a bottom above the $38,600 support level.

The cryptocurrency would be above the 21-day SMA if the bulls bought the dips. This will force Bitcoin to trade between the 21-day SMA and the $44,000 level. Buyers have the chance to push Bitcoin to the projected high of $48,000. In the meantime, the Bitcoin price is likely to oscillate between the moving average lines for a few days. At the time of writing, one Bitcoin is worth $41,167.

Bitcoin indicator display

After a recent dip, the price bar is below the 21-day SMA but above the 50-day SMA. Bitcoin has settled between the moving average lines and is likely to begin a range-bound move. After the previous dip, the moving average lines have continued to rise.

Technical indicators:

Key resistance levels – $35,000 and $40,000

Key support levels – $30,000 and $25,000

What is the next direction for BTC/USD?

The current rally is over as Bitcoin is under renewed selling pressure. Since December 5, the cryptocurrency has been trading between $40,500 and $44,000. The selling pressure on the largest cryptocurrency will intensify if it falls below the psychological price of $40,000.

Last week Coinidol.com reported that the Bitcoin price is attempting to retest or break through the $45,000 mark. 

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.