Bitcoin (BTC) has fallen into a narrow range between $47,000 and $50,000. Today, the BTC price is trading at $46,589 as of press time. Buyers are struggling to push the price above the $47,000 support level.
Bitcoin's bearish scenario began after the price plummeted on December 4. On December 7, the BTC price corrected to the high of $52,000 but was rejected. It began a series of lower highs and lower lows.
From the bearish pattern, a lower high at $52,000 retraced to a lower high at $48,000 on December 19. The cryptocurrency is now trading in a tight range below the $48,000 high. When cryptocurrencies trade in a tight range, there is usually a price dip or rally. If Bitcoin bounces above the $46,000 support, the market will rally above the $50,000 resistance. Conversely, if the price collapses, the market will drop sharply to the low of $41,000.
Bitcoin has fallen to the low of $46,589 as it reaches level 36 of period 14 of the Relative Strength Index. Bitcoin is in a downtrend and approaching the oversold area of the market. The moving averages of the 21-day line and the 50-day line are sloping south. The moving average of the 21-day line represents resistance for Bitcoin.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $60,000 and $55,000
Bitcoin is in a downtrend. The cryptocurrency risks another decline if it loses support at $46,000. Bitcoin can easily rebound to the previous low of either $41,634 or $39,678. It is unclear if Bitcoin will rally at the current low. Perhaps this will catapult the largest cryptocurrency asset out of the downward correction.
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 own research before investing funds.