Bitcoin Price Prediction: BTC/USD Consolidates Above $31,000 After the Sharp Sell-off

Bitcoin (BTC) Price Prediction – January 5

BTC/USD slides below $32,000 after a day-long of acceptable bullish bias as the coin trades around $31,648.

BTC/USD Long-term Trend: Bullish (Daily Chart)

Key levels:

Resistance Levels: $36,000, $36,200, $36,400

Support Levels: $25,200, $25,000, $24,800

BTC/USD drops below $32,000 during the early Asian hours of trading as the coin couldn’t recover above the 648 level so far. At the time of writing, the price of Bitcoin is moving around $31,823 as the coin is down with 1.16% within 24 hours. The number one cryptocurrency hit a brick wall on the approach to $33,000 and dropped under the pivotal area in a matter of hours.

Where is BTC Price Going Next?

The Bitcoin price remains above the 9-day and 21-day moving averages as the upside break above the channel is a must to start a substantial recovery. Meanwhile, the next hurdles may be seen near the resistance levels of $36,000, $36,200, and $36,400. On the downside, initial support is near the 21-day MA at $27,000 level and if there is a successful break below this level, the bears are likely to gain strength by bringing the price to a low of $25,200, $25,000, and $24,800 support levels.

Looking at the daily chart, BTC/USD is following a dominant bearish bias and a glance at the technical indicator RSI (14) displays a negative picture for BTC in the near-term. In addition, maintaining a gradual downward trend in the negative region, the signal line of RSI (14) decreases as it faces a downward trend for an increase in selling entries.

BTC/USD Medium – Term Trend: Bullish (4H Chart)

According to the 4-hour chart, Bitcoin’s price is currently trading around $32.096 and between the 9-day and 21-day moving averages after falling from $32,890 where the coin touched today. Meanwhile, the 4-hour chart reveals that the bullish supply is coming up slightly as the technical indicator RSI (14) is moving around 55-level to increase the bullish momentum.

However, the more the bulls strengthen and energize the market, the more they push the price to a $33,000 resistance level. Therefore, breaking the mentioned resistance could also allow the bulls to test the $34,000 and above. Meanwhile, the market is following the upward movement as the RSI (14) moves to cross above the 60-level, but any bearish movement below the lower boundary of the channel could reach the support level of $29,200 and below.