If the bears maintain their bearish momentum the previous low of $3,247 price level may be the target of Bitcoin.
Resistance levels: $3,679, $4,249, $4,715
Support levels: $3,247, $2,765, $1,956
BTC/USD broke out the ranging phase on the long-term outlook. The cryptocurrency eventually broke out of the range-bound movement between the resistance level of $4,249 and the last week support level of $3,677 which the Bitcoin price has been involved for over two weeks. The bearish broke out took place on December 13 after the formation of the big bearish candle. The $3,679 price level broken downside, exposing the coin to the support level of $3,247.
BTC price has broken the barrier of the two EMAs, currently trading below the 21-day EMA and 50-day EMA as evidence of bearish pressure. The Relative Strength Index period 14 is at 40 levels with the signal lines bending downward which signify that Bitcoin price will fall further. If the bears maintain their bearish momentum the previous low of $3,247 price level may be the target of the coin.
BTC/USD resumes bearish trend on the medium-term outlook. Bitcoin price found its high at $4,237 price level last week and a further increase was rejected by the bears. Further increase of the bears’ momentum pushed the coin to cross the two EMAs downside by the formation of bearish engulfing candle followed by the massive bearish candle. The former support level of $3,679 was broken down and the BTC price facing the support level of $3,247.
The 50-day EMA is currently placed above the 21-day EMA with Bitcoin price trading below the two EMAs which indicates the high momentum of the sellers. The RSI period 14 is at 20 levels with the signal line pointing up which indicates buy signal; this could be a price retracement. A bullish rally may be envisaged in case the resistance level of $3,679 price level does not hold and a strong bullish candle is closed above the $3,679 price level.
Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.