Bitcoin Retraces after Rejection from $35k Resistance Zone, Targets $40k High

Bitcoin (BTC) has been retracing for the past three days in January 2021 after hitting the $35,000 resistance zone.

Bitcoin Price Long-Term Prediction: Bullish

On January 4, Bitcoin price has fallen and it is below the $30,000 support level. Bitcoin is falling because the market has reached the overbought region. Since December 25, the indicators have signalled that BTC has no room to rally on the upside. 

On January 3, the coin fell to $32,509 and corrected upward. After the retest at $33,700 high, the downward move resumed. The selling pressure will continue to $30,500 low. The downtrend will persist if the $30,500 breaks. 

Nonetheless, after correction, Bitcoin bulls will attempt to retest the $40,000 resistance level, once the $35,000 resistance zone is cleared. However, the upward move will face stiff resistance at the $37,000 high. In the meantime, the coin is still falling at the time of writing.

Bitcoin (BTC) Indicator Reading

BTC price is at level 74 of the Relative Strength Index. The RSI has fallen from level 88 to 74. The coin has also fallen below the 80% range of the daily stochastic. This indicates that the crypto has bearish momentum. The upward move is intact as the price bars are above the SMAs.

Key Resistance Zones: $40,000, $41,000, $42,000

Key Support Zones: $20,000, $19,000, $18,000  

What Is the Next Direction for BTC/USD?

Bitcoin is falling as it faces rejection from the $35,000 resistance zone. On January 3 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that BTC will fall and reach a low of 2.0 Fibonacci extensions. That is a low of $29,502.80. BTC will resume an upward move if the $29,500 support holds.

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