Cryptocurrency

Bitcoin falls below $42,000 as new forecast calls BTC price breakout ‘most likely outcome’

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Bitcoin (bitcoin) returned near $40,000 on Thursday as resistance at $44,000 proved too big for the bulls to overcome.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

buy again

data from Cointelegraph Market Pro and Transaction view It shows that BTC/USD fell about 4% in 24 hours on January 14.

The pair broke above $44,450 on Bitstamp with a local low of $41,780 before the retracement began.

While disappointed for those hoping the worst of the pullback was over, analysts didn’t seem surprised by the move, which they said could be resolved with a fresh test of the $40,000 support level.

Popular trader Pentoshi also seems to have got his wish – Bitcoin ‘sweeps’ lows below $42,000 Sure as the main opportunity for entry. The next one could be $46,000, he added.

Imminent, however, is another “death cross” chart structure for BTC/USD, a classic signal warning of a bearish situation.

As previously reported by Cointelegraph, death cross When the falling 50-day moving average crosses below the 200-day moving average.The feature is somewhat rare, but not always result Bearish behavior thereafter.

BTC/USD 1-day candlestick chart (Bitstamp) with 50-day, 200-day moving average. Source: TradingView

Upside conclusion is still open to debate

Looking ahead, analysts at trading suite Decentrader remain bullish on medium-term price action, acknowledging that another drop to the $30,000-40,000 range is likely.

related: Up or down?Traders are divided on whether Bitcoin will continue to rise

The two-month downtrend from early December was ripe for a break, and they debate In a market update released on Jan. 14, the upside “could” outweigh the cascading decline.

“We think we may need to see further into the $44,000 to $38,000 price range before a final breakout. This range could bring more to any trader trying to impatiently get ahead of the main move before getting ready. of pain and suffering.” Update Summary.

encourage, decentralize Add to, whether the financing rate gradually becomes more and more negative Sentiment finally turns to expect further decline — Squeeze upside health conditions.

“Given Bitcoin’s current fundamentals and the size and consistency of its downtrend over the past two months, we do believe that an eventual move out of the range-bound upside is the most likely outcome.”

BTC funding rate chart. Source: Coinglass