Is Bitcoin preparing to go short again?

What's in this article

Bitcoin is struggling to gain some momentum upwards after it broke below the psychological support level of $40,000. Volume candles spiked there indicating huge liquidations and stop-loss collections.
Bitcoin price today is $41,774.51 USD with a 24-hour trading volume of $32,803,951,489 USD. Bitcoin is up 2.38% in the last 24 hours, with a market cap of $790,621,493,793 USD. It has a circulating supply of 18,925,931 BTC coins. 

Source: Tradingview


Bitcoin: Analysis

After December 27 when Bitcoin was at $50,000, EMA 100 is acting as strong resistance to it on an hourly chart. If we look at the chart, we see that Bitcoin started making lower highs from $50,000 on a $46,000 support. This support level was long tested until it broke to $42,000 on January 5. Bitcoin, again, is forming the same pattern by making lower highs on the support of $40,000 so it’s very likely to plunge to the support of $37,000, fi 1.618. However, BTC can escape by breaking the resistance of EMA 100 near $43,000. 

About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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