Following its unsuccessful attempt to break the psychological price level at $40,000, BTC price is now confined in a tight price range. The king coin is fluctuating between $34,500 and $38,000.
Today, the coin has fallen to the support of the lower price range and it is resuming upward. For the past week, Bitcoin has been stuck in this current range as buyers and sellers reach a period of indecision. The price action is characterized by small body candlesticks called Doji and Spinning tops.
The current price action is an indication that there is a possible breakout in the nearest future. On the upside, a breakout at the $38,000 and $41,969 highs will propel BTC to rally above the $45,000 price level. Perhaps, the bullish momentum will extend to the next psychological price level of $50,000. On the other hand, if the bullish scenario fails, the bears are likely to break the $34,500 support, compelling the BTC price to decline to $29,600. However, further decline below this support will attract deeper correction
Bitcoin indicator reading
BTC price has fallen to level 55 of the Relative Strength Index period 14. The coin has retraced to the lower price range while in the uptrend zone. The crypto is above the centerline 50 which is capable of a further upward move. Bitcoin will rise as long as the price bars 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 price is consolidating now in a tight range. The Fibonacci tool analysis is indicating bullish signals for Bitcoin. The Fibonacci tool analysis will hold if the psychological price level is broken. On January 8 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement gives the impression that BTC will rise to level 1.618 Fibonacci extension. That is a high of $48,161.60.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.