- BTCUSD extends sideways move in narrow range
- The 200-period SMA rejects any upside attempts
- Momentum indicators 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 41,400. Although the short-term oscillators have been tilted to the downside for the past few four-hour sessions, the digital coin managed to recoup some losses and adopt a neutral pattern.
Should the bears attempt to push the price lower, immediate support could be found at 42,025. Sliding beneath that floor, Bitcoin could test the recent low of 41,400, a region that provided support multiple times in December. Further retreats may then cease around the December hurdle of 40,507.
Alternatively, if the price reverses back higher, attention could fall to 43,400, which has not only acted as both resistance and support in recent months but also lies very close to the 200-period simple moving average (SMA). Conquering this barricade, the bulls might attack the January resistance of 44,725 that also held strong in December. Even higher, the January resistance of 45,912 may curb any upside attempts.
Overall, BTCUSD has been in a consolidation mode following the steep fall from its two-year high. However, the impending completion of a death cross between the 50- and 200-period SMAs could reignite downside pressures.
