Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Bitcoin Tumbles, More Downside Likely

By JFD TeamCryptocurrencyJan 10, 2022 08:03AM ET
Bitcoin Tumbles, More Downside Likely
By JFD Team   |  Jan 10, 2022 08:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Bitcoin has been trading in a sliding mode since Dec. 27, when it hit resistance at the $52,115 level. That said, in our view, the important technical slide was the break below $45,040 on Jan. 5. This confirmed a forthcoming lower low and the exit of the consolidation range the crypto had been trading within since Dec. 5. 

Then the crypto was paused near the $40,740 level, marked by the low of Sept. 29, but bearing in mind that it is trading below the last upside support line taken from the low of Jul. 20, as well as below the downside line taken from the high of Nov. 11, we would see decent chances for further declines.

However, to get more confident on that front, we would like to see an apparent dip below the $39,400 hurdle, marked by the low of Sept. 21. This could encourage the bears to push towards the low of Jul. 25, at $34,440, and if they are not willing to stop there, a break lower could see scope for extensions towards the $29,190 area, which acted as a temporary floor between May 19 and Jul. 20.

Shifting attention to our daily oscillators, we see that the RSI fell below 30 and continued to point down, while the MACD lies below both its zero and trigger lines. Both indicators detect strong downside speed and support the notion for further declines in this cryptocurrency, at least in the near term.

To abandon the bearish case and start examining whether the bulls may have gained the upper hand, we would like to see a clear break above $53,350. The price would still be below the upside line taken from the low of Jul. 20, but the recovery would have also confirmed a forthcoming higher high on the daily chart.

We would then expect advances towards the $59,340 territory, which resisted on Nov. 21 and Dec. 1. Another break could extend towards the $62,615 barrier, marked by the inside swing low of Nov. 10.

Bitcoin daily chart technical analysis.
Bitcoin daily chart technical analysis.

Bitcoin Tumbles, More Downside Likely

Related Articles

Crypto Briefing
Solana, Avalanche, Fantom Lead Ongoing Market Slump By Crypto Briefing - May 27, 2022

Avalanche, Fantom, and Solana, have posted double-digit losses on the day as the market endures its seventh consecutive month in freefall. Key Takeaways The global cryptocurrency...

AMarkets Company
Bitcoin: Gloomy Times Lie Ahead By AMarkets Company - May 26, 2022

Bearish sentiment in the cryptocurrency market remains at extreme levels. Bitcoin has been edging lower for seven consecutive weeks, which confirms its strong correlation with...

JFD Team
Litecoin Breaks Below 64.35 By JFD Team - May 26, 2022

LTC/USD traded lower today, breaking below the 64.35 barrier, marked by the lows of May 16 and 19. The crypto has been oscillating between that barrier and the 74.10 zone since May...

Bitcoin Tumbles, More Downside Likely

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email