Bitcoin surged above the $44,700 resistance on January 2, but this breakthrough turned out to be a price trap as it sharply declined on January 3. Buyers stepped in as prices dipped to the 50-day simple moving average ($40,938), indicating strong bullish defense around the $40,000 mark. The exponential 20-day moving average traded sideways ($42,855), and the Relative Strength Index (RSI) near neutral suggested restrained price action ahead, within a potential range between $40,000 and $45,879.
A sharp drop below the $40,000 support might signal short-term bearish surrender, possibly pushing the BTC/USDT pair towards the next major support at $37,980.
Buyers could regain control by pushing the price above $45,879. Subsequently, the pair could aim for $50,000.
The recent price fluctuations indicate a tug-of-war between buyers and sellers, emphasizing critical support and resistance levels that will dictate the next market move. Breaking through resistance or succumbing to lower support thresholds will be pivotal in determining short-term market sentiment.
A sharp drop below the $40,000 support might signal short-term bearish surrender, possibly pushing the BTC/USDT pair towards the next major support at $37,980.
Buyers could regain control by pushing the price above $45,879. Subsequently, the pair could aim for $50,000.
The recent price fluctuations indicate a tug-of-war between buyers and sellers, emphasizing critical support and resistance levels that will dictate the next market move. Breaking through resistance or succumbing to lower support thresholds will be pivotal in determining short-term market sentiment.
