- Bitcoin price is currently above both the 50 SMA and the longer term 100 SMA.
- The bulls have eyes on $4,000 in the medium-term.
- The key resistance for BTC/USD is highlighted at $4,272.36.
Bitcoin is seen trading at $3,855 on the third day of the new year. While there has been a lower correction from the intraday high, the technical levels displayed by various indicators in the 4-hour range. Besides, after Bitcoin was rejected at $4,200, it declined and settled in a bear range with an upper limit (resistance) at $3,900 and a range support limit at $3,600.
The largest cryptocurrency by market capitalization is valued at $68 billion at the time of writing. Bitcoin’s trading volume in the last 24-hours stands at $5 billion. It is slightly in the green considering the price change in the last 24 hours.
Meanwhile, the price is currently above both the 50-day simple moving average (SMA) and the longer term 100-day SMA. The shorter SMA has made a double cross below the longer term SMA to show that the bears are gaining ground against the bulls. Looking at the RSI, the indicator is relatively higher compared to the levels on January 1. Likewise, it has changed direction away from the overbought region and this could mean that Bitcoin will stay in the range for 3 to four days. The DMI on the same chart shows the current trend is here to stay.
According to the Confluence Detector tool, Bitcoin will face growing resistance at $3,871.78. The price corrected higher above $3,900 yesterday but failed to sustain the move and slipped back into the range between $3,791 and $3,871.78. The bulls have eyes on $4,000 in the medium-term. However, the must overcome a slight seller concentration at 3,911.84 which will pave the way for additional growth past $4,000. The key resistance for BTC/USD is highlighted at $4,272.36.
Marginally below the current price, Bitcoin initial support is at $3,791.66 while the next support rests at 3,751.78. If the price drops below this level, it will be a free fall until it reaches the stronger anchor at $3,591.37.
Read More:
Bitcoin price rejected at $3,900; will the 50 SMA hold?
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