Bitcoin (BTC) is currently facing challenges as its price hovers around the critical support level of $80,000. After encountering resistance at the 21-day Simple Moving Average (SMA) near $93,000, the leading cryptocurrency has seen a decline, pushing it closer to its recent lows.
As reported on November 21, Bitcoin touched a low of $80,000, but bullish buyers stepped in to purchase the dips. However, the situation has taken another turn as Bitcoin approaches this support level again, with buyers struggling to maintain momentum above the moving average lines.
Should the $80,000 support level hold, Bitcoin may remain trapped in a range-bound movement, oscillating above this support while failing to breach the moving average lines. Conversely, if this support is broken, analysts predict that the price could drop further to around $73,000. Currently, Bitcoin is valued at $85,090.
Analyzing Bitcoin”s price indicators reveals that the 21- and 50-day SMAs are trending downwards, indicating a bearish outlook. The price bars are currently situated below these moving averages and are being resisted by the 21-day SMA. Notably, long candlestick tails at the $80,000 level indicate a significant buying pressure, suggesting that traders are actively defending this support.
On the 4-hour chart, the moving average lines appear horizontal, signaling the stabilization of the downtrend above the $80,000 mark. Bitcoin has been trading sideways since this downtrend paused, positioned between the $80,000 support and the $94,000 peak.
Today, Bitcoin”s price is exhibiting some upward movement after reaching a low of $84,000. The presence of Doji candlesticks implies that Bitcoin is in a state of indecision, oscillating as it awaits a clearer trend direction.
This analysis reflects the author”s personal insights and is based on data collected independently. It is essential for readers to conduct their own research before making investment decisions in the cryptocurrency market.
