Bitcoin is gaining back its momentum
The weekly timeframe indicates that in the second week of January, the price faced resistance at the 0.618 Fibonacci retracement level.
This resulted in a bearish weekly shooting star candlestick (red icon) with a long upper wick. However, BTC has started to recover and is almost reclaiming the 0.5 correction Fibo support level.
Source: TradingView
Despite this rebound, the weekly Relative Strength Index (RSI) is still showing negative signals. It is declining and has dropped below 70 after previously being overbought.. All these are indications of a bearish trend.
What experts say
Cryptocurrency traders and analysts on Platform X have mixed opinions about BTC’s prospects.
For instance, CryptoMichNL predicts that the price will rise to $50,000. He stated:
“#Bitcoin is consolidating and appearing uneventful. It will likely seek to establish a higher low, after which we can expect a slight push towards $48-51K before the halving.”
BTC/USDT daily chart. Source: X
XForceGlobal shares a similar view, applying Elliott wave theory to support its conclusions. Credible Crypto believes the price has started a new upward trend that will lead to new record highs, but a short-term pullback is expected in the near future.
BTC forecast: Are new lows expected?
The daily timeframe indicates conflicting results.
On one hand, the price has recovered above the horizontal support area of $41,000 after briefly dropping below it. However, it still remains below the 0.5 correction Fibo resistance level at $43,800.
Additionally, there is a strong resistance zone around $45,100, formed by the 0.618 Fib retracement level and the horizontal resistance area.
Lastly, the daily RSI is still facing resistance from its bearish divergence trendline (green) and is near the 50 mark. To initiate a bullish trend reversal, this barrier needs to be surpassed.
If BTC breaks above $43,800, it could rise by 5% to reach the resistance at $45,100.
Source: TradingView
Conversely, a pullback from the 0.5 correction Fibo resistance level could lead to a 5% decrease in Bitcoin’s price to $41,000.
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