BTC/USD: Bitcoin is sitting on support line as a rally by bulls is around the corner
- BTC/USD is currently sitting at the support line of around $3,500 with bears pulling the overall market down over the last 24 hours.
- In order to change this trend, the bulls need to fight back and break past resistance at around $4,040.
Bitcoin lost about 3% of its value on Monday, January 14 on market speculation. Currently, BTC/USD is perched on top of the $3,500 support line. Buyers need to fight back to stop the market from going down any further. The short-term focus for the bulls will be to break past the resistance at $4,040. The technical indicators show that there is an upcoming bullish trend around the corner should the crossover of moving averages attracts sufficient support from buyers pushing the price higher.
BTC/USD daily chart
Sellers pulled the market down to the support line of around $3,500 on Monday, January 14. There are two visible resistance lines that the bulls need to break through. The downward trending line (green) and the resistance at around $4,040 (pink). In the short-term, the buyers definitely need to break through that resistance for the market to go up.
Looking at the 50-day simple moving average (SMA) and 20-day SMA curves. The curves intersected each other on Monday, January 7 and that should indicate an upcoming bullish trend. Also, the Relative Strength Index (RSI) is slowly creeping towards the oversold territory to once again indicate a future uptrend.
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