Bitcoin (BTC) bulls have continued to hold above $47,000 support as buyers try to push BTC price to previous highs.
Today, buyers are pushing the BTC price above the $48,500 high, but are encountering resistance at the recent high. The cryptocurrency is trading in a tight range between $47,000 and $50,000.
Buyers are encountering strong resistance at the recent high. However, if Bitcoin rallies at any price level, it will break the psychological $50,000 price level. The bullish momentum will extend to the previous price levels. The cryptocurrency will exit the downward correction when the price crosses the high at $58,000. On the other hand, if the bears break above the support at $47,000, Bitcoin will repeat the price drop from December 4. In other words, Bitcoin will crash to the low of $41,634. The cryptocurrency will face a deeper correction.
Bitcoin indicator reading
Bitcoin has risen to level 40 on the Relative Strength Index for period 14. This is in light of the recent price action above the high of $48,000. Bitcoin price is approaching the moving averages but is still below them. This means that bitcoin will fall if it is rejected at the moving averages. The cryptocurrency will continue to rise if it breaks out above the moving averages.
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $60,000 and $55,000
What is the next direction for BTC?
Bitcoin (BTC) has consolidated above current support as buyers continue to push higher. Meanwhile, the Fibonacci tool suggests a possible reversal of the downtrend at the 1.272 Fibonacci Extension level or $49,600.40. This comes from the candlestick testing the 78.6% Fibonacci retracement of the November 27 downtrend.
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.