BTC/USD has been in a sliding mode since Tuesday, when it hit resistance slightly below the $39,400 territory, marked by the inside swing low of Jan. 10. Overall, the crypto remains below the downside resistance line drawn from the high of Nov. 10, which keeps the near-term outlook negative.
We believe that the bears could stay in charge for a while more, but to get confident on more significant declines, we would like to see an apparent dip below the $35,400 zone, marked by the low of Jan. 27. This could initially allow a slide towards the $32,800 barrier, marked by the low of Jan. 24, the break of which could carry more significant extensions, perhaps towards the $29,190 zone, which acted as a floor for the crypto between May 19 and Jul. 19.
Turning our gaze to our short-term oscillators, we see that the RSI lies below 50 and points down, while the MACD runs below both its zero and trigger lines. Both indicators detect downside speed and corroborate the notion for further declines in this cryptocurrency.
On the upside, we would like to see a clear break above $41,000 before we start examining a bullish reversal. The price will already be above the aforementioned downside line and may initially travel towards the $44,200 zone, marked by the highs of Jan. 12 and 13, or the $45,700 zone, marked by the inside swing lows Dec. 29 and 30. If the bulls are unwilling to stop there, we could see them climbing towards the $48,500 area, marked by the peak of Dec. 27.
