BTC/USD Fluctuates Below $48k; A Breakdown Is Imminent, 2021
On December 31, BTC/USD plunged to the low of $45,695 indicating that a breakdown is Imminent. The market is steadily resuming upward retesting the previous highs. The bottom line is that the uptrend is facing resistance at the $48,000 and $49,000 price levels.
Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000
Today, BTC’s price rebounds above the current support as it approaches the 21-day line moving average. The price movement is likely to be accelerated when the 50-day line moving average is breached. Recently, BTC’s price has been facing rejection at the $49,000 high. This has caused Bitcoin to trade in a tight range. Presently, BTC prices are fluctuating between $45,695 and $48,000 price levels. Bitcoin risks further decline if the bears break below the $45,695 support. Bitcoin will decline to the low of $41,634 price level. Presently, Bitcoin is trading at $47,650 at press time. On the upside, if Bitcoin rebounds above the current support, BTC price will break the resistance levels and rally above the moving averages. BTC/USD will rise to $55000 high.
Bitcoin (BTC) Indicator Reading
BTC price is still below the 21-day line moving average and the 50-day line moving average. The king coin is prone to further decline. Bitcoin has fallen to level 42 of the Relative Strength Index for period 14. The crypto is in the downtrend zone and capable of falling. Bitcoin price is below 50% area of the daily stochastic. The market has resumed bullish momentum.
On the 4-hour chart, Bitcoin faces rejection at the $50,000 high indicating that a breakdown is Imminent. Presently, it is facing resistance at the $48,000 high. The price upward moves are hindered by selling pressure are the recent high. This will increase the possibility of a breakdown below $45,695 support. A breakdown will sink Bitcoin to the low of $41,634.
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