Bitcoin (BTC) – Rotated south breaking through the crucial 45,500 support levelPosted on Wednesday, January 5 2022 at 10:28 pm GMT+0000
After being trapped in a sideways consolidation since the beginning of 2022, Bitcoin (BTC) managed to rotate south breaking through the crucial 45,500 support level.
Although oscillators were flattening the past couple of sessions, the recent bearish developments pushed the Momentum oscillator well below zero and caused the MACD to slide once again below its signal line. Both indicators are now reflecting the uptick in bearish momentum as negative sentiment intensifies.
Since the price refused to adhere to the 45,500 base, it should initially dive towards the 42,000-39,500 region linked to the December 4th and September 21st lows. A bit lower, the 4th of July high at 36,000 should attempt to contest the additional loss of ground. Should it fail to hold, attention will immediately turn towards the 30,000 round psychological number.
At the time being, all Ichimoku plots are endorsing the depressed price behavior. Price is well below the Kumo and the Tenkan sen has recently crossed back below the Kijun sen. In the less likely scenario that bulls regain immediate control, the area around 48,000 should present a good resistance zone before reaching out towards the consolidation range upper bound of 52,000.
To summarize, the number one cryptocurrency has failed to hold the bottom of the 45,500 and this gloomy evolution opened the door for further losses in the coming days in the direction of the 42,000-39,500 region.