- BTCUSD manages to halt its short-term decline
- But its rebound encounters resistance around 40,000
- Momentum indicators still deep in their negative zones
BTCUSD (Bitcoin) has experienced a strong decline from its recent two-year peak of 49,051, dropping to as low as 38,460. Despite the price’s attempt for recovery, the short-term oscillators are still heavily tilted to the downside, painting a rather dire technical picture.
If the price manages to extend its rebound, the inside swing low of 41,285 could prevent initial advances. Conquering this barricade, the bulls might attack the January resistance of 43,400 ahead of the December peak of 44,725. A jump above the latter could shift the spotlight to 45,912.
On the flipside, should bullish pressures abate, Bitcoin could revisit its almost two-month low of 38,460. In case of a downside violation, there is no prominent support until the October hurdle of 33,400. Even lower, the previous resistance of 31,827 could provide downside protection.
In brief, it seems that BTCUSD’s decline has temporarily halted, but it’s too early to call for a sustained recovery. That being said, a clear close above the 40,000 mark is needed to revive the bulls’ hopes for more upside.
