Bitcoin Struggles Below $39,000 High and Regains Momentum

On January 27, 2022, Bitcoin (BTC) price started a positive trend with the resumption of the upward correction.

Bitcoin (BTC) Price Long-Term Forecast: Bearish

After a successful recovery on January 24, the BTC price rose to the $40,000 resistance zone. The largest cryptocurrency remained stuck at the $38,935 high, but managed to resist it. The market would have rallied above the $40,000 resistance if the initial resistance was overcome. 

However, if the bullish momentum extended to the $44,000 high, the bears would have lost control of the bear market. Today, Bitcoin has fallen back to the low of $36,034 as this article was being written. If selling pressure continues and the bears break through support at $33,000, Bitcoin will fall to the low of $30,000. 

Since the January 4 plunge, BTC/USD has fluctuated between the $33,000 and $39,000 levels. Bitcoin will resume its trend when the trading range boundaries are broken.

Bitcoin indicator reading  

The recent price action is still in the oversold zone as the price reached the 25 level of the Relative Strength Index for the period 14. The bottom line is that the cryptocurrency will continue to fall as long as the BTC price is below the moving averages. At the same time, buyers may have taken control of prices as Bitcoin reaches the oversold region. BTC/USD is in a bearish momentum as the price is below the 20% area of the stochastic on the daily chart.

Technical Indicators: 

Key resistance levels - $65,000 and $70,000

Key support levels - $60,000 and $55,000

What is the next direction for BTC/USD?

BTC/USD has resumed its upward movement as the price has reached the high of $39,000. Buyers are still struggling to overcome the important resistance levels. According to the Fibonacci tool analysis, Bitcoin has reversed at the 1.272 level of the Fibonacci extension or at $34,207.50. On January 24, the largest cryptocurrency retested this level and resumed the uptrend. Currently, Bitcoin is in a range-bound movement.

Disclaimer. This analysis and forecast are the personal opinions of the author 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.