Bitcoin Price Prediction: BTC/USD Stumbles Below $42,000
Bitcoin Price Prediction – January 7
The Bitcoin price prediction shows that BTC loses over $1500 as the coin remains below the 9-day and 21-day moving averages.
BTC/USD Long-term Trend: Bearish (Daily Chart)
Key levels:
Resistance Levels: $47,000, $49,000, $51,000
Support Levels: $37,000, $35,000, $33,000
BTC/USD is currently sliding below the 9-day and 21-day moving averages as the coin touches the daily low at $41,000. The Bitcoin price is in a dangerous position as the price faces the lower boundary of the channel. If the breakdown continues, the downside momentum will gain traction with the next focus on $40,000. At the time of writing, Bitcoin is trading towards the south at $41,390 with a decline of 3.93% on the daily price chart.
Bitcoin Price Prediction: Bitcoin (BTC) Not Ready for the Upside
At the time of writing, the Bitcoin price heads to the downside, therefore, if the Bitcoin price rejects the higher resistance level, lower levels may be tested in a sequence of lower highs and lower lows until prices touch the next critical support level. However, the market may experience a lot of short-term based trades and a lot of volatility too as the technical indicator Relative Strength Index (14) moves into the oversold region.
Meanwhile, it is important to note that the Bitcoin price is most likely to breaking as much as the 9-day MA remains below the 21-day MA, and its failure to hold the mid-range support level may pull the price down to its next support level at $40,000. Therefore, the short-term analysis indicates that BTC/USD may test higher levels with key resistance at $45,000 before a reversal and the resistance levels to watch are $47,000, $49,000, and $51,000 while the supports are located at $37,000, $35,000, and $33,000 respectively.
BTC/USD Medium – Term Trend: Ranging (4H Chart)
According to the 4-hour chart, BTC/USD has been facing immense turbulence throughout the past several days, with sellers forcing its price down to the lows of $40,925. If bulls decide to push the market price above the 9-day moving average, the coin may likely hit the resistance at $43,000 and above.
However, it now appears that the cryptocurrency is not ready for further upside now, as the multiple attempts to shatter its $41,000 resistance seem to indicate that bears are building momentum. Therefore, the Relative Strength Index (14) moves into the oversold region and the critical support level may be located at $39,000 and below.
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