BTC To Retest $43,500 Support Wall
Monday January 03, 2022 marked the 13th birthday for the world’s first cryptocurrency, Bitcoin. Bitcoin price has risen tremendously since Satoshi Nakamoto, the Bitcoin creator, mined the genesis block or block 0 13 years ago. On January 3, 2009, Nakamoto mined the first block for the Bitcoin network getting a reward of 50 Bitcoin (BTC).
13 years later, the Bitcoin network is showing no signs of slowing down as BTC/USD price hit unprecedented record highs in 2021 and Bitcoin enthusiasts expect the price to continue surging in 2022.
However, the current consolidation below $50,000 gives investors on opportunity to buy cheaply before the big crypto surges again.
Bitcoin Price Present A Buying Opportunity At The $43,500 Support Zone
BTC has been trading below the $52,000 level for the last one month with the downtrend extending to areas as low as $43,500. This downtrend has continued to the days leading into the new year, with Bitcoin price consolidating at $46,311 at the time of writing.
The downward BTC price action has formed a descending parallel on the daily chart as shown below. Note that, as long as the pioneer crypto continues to trade within the confines of the parallel channel, the price is set to go lower.
BTC/USD Daily Chart
Therefore, a closure below the immediate support at $46,000 could trigger massive sell orders that could take BTC price below the $44,000 psychological level to tag the middle boundary of the governing chart pattern around $43,500.
Apart from the bearish chart pattern, the position of the Relative Strength Index (RSI) indicator at 40.71 and the call to sell signal from the Moving Average Convergence Divergence (MACD) indicator is an indication that bears are overpowering the bulls at the moment.
On the upside, several recovery attempts have been made to reclaim the $50,000 crucial level. Bulls might try to make the same recovery attempt and they might succeed if they achieve a closure above the $47,293 resistance level.
A clear bullish breakout will be achieved if Bitcoin price overcomes the resistance at $48,197 where the 200-day Simple Movign Average (SMA) and the upper boundary of the descending channel coincide. If this happens, bulls will be bolstered to push the price even higher and the $60,000 level forecasted by most industry players for the Bitcoin in the first quarter of 2022 will become a possibility.