Bitcoin (BTC) returned around $ 40,000 on Thursday when the resistance of $ 44,000 proves that the bulls can not break it.
Hourly candlestick chart BTC / USD (bit stamp). Source: Trading View
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Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair fell almost 4% in 24 hours on 14 January.
The pair broke the $ 44,450 mark on Bitstamp before the correction began, leading to a local low of $ 41,780.
While analysts have disappointed those who had hoped the worst of the downturn would end, analysts did not appear to be surprised by the move, which they say can be resolved with a new $ 40,000 support test.
It also turned out that the well-known trader Pentoshi got his wish – a “sharp” fall in the price of bitcoin below $ 42,000, which he previously identified as an important entry point. He added that $ 46,000 could be next.
With that said, another threatening death cross chart on the BTC / USD is a classic signal to warn of bearish conditions.
As the Cointelegraph previously reported, a dead cross occurs when the lower 50-day moving average crosses the 200-day moving average. This feature is quite rare, but it has not always led to bearish behavior afterwards.
1-day BTC / USD (Bitstamp) candlestick chart with 50-day and 200-day moving averages. Source: Trading View
Bullish conclusion Still on the cards
Looking ahead, analysts at the Decentrader trading platform remain optimistic about medium-term price developments, acknowledging the possibility of another $ 30k to $ 40k pullback.
Related: Up or Down? Traders disagree on whether bitcoin will continue to rise
In a market update on 14 January, they claimed that the two-month downtrend since the beginning of December was ready for unrest and that an uptrend was “likely” during the downtrend.
“In our view, we may need to see a little more price in the $ 44,000 to $ 38,000 range before a final outbreak. This range is likely to cause more pain and suffering for any trader who is impatiently trying to make big moves before they are ready,” the update concludes. .
Decentrader added that it is encouraging that financing rates are gradually becoming more negative as sentiment eventually changed to expect further falls – favorable conditions for upward pressure.
“Given the current fundamentals of bitcoin and the size and endurance of the downtrend over the past few months, we believe a range-to-up move is the most likely outcome in the end.”