The price of Bitcoin (BTC) has taken another tumble after eight days of struggling in a tight range. As of press time, the BTC price has fallen to $42,887.
There is a chance that the price will hit the previous low at $41,634. This was the previous low of the December 4 price collapse. After that, sellers could push the BTC price to the former psychological level of $40,000. However, if the BTC price holds above the $42,000 support, it would be a sign of resumption of the uptrend. Otherwise, the downtrend will continue to the downside. The recent price drop was caused by a one-week consolidation between $45,600 and $48,000.
Bitcoin indicator reading
Bitcoin has fallen to level 31 on the Relative Strength Index for period 14. The cryptocurrency is approaching the oversold area of the market. The market will continue to decline when the cryptocurrency price is below the moving averages. The BTC price is below the 20% range of the daily stochastic. This price indicator shows that Bitcoin is already in the oversold region of the market. This means that buyers will show up in the oversold region.
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $60,000 and $55,000
What is the next direction for BTC?
On the 4-hour chart, the BTC price has broken below the horizontal channel and crashed to the low of $42,887 at the time of writing. The altcoin is now consolidating above the $42,000 support, and selling pressure will resume if the current support is broken. Conversely, Bitcoin will escape a deeper downside correction if it rises back above current support.
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.
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