fxstreet.com
- Bitcoin price action sees downward pressure after a series of rejections at $44,088.
- BTC price takes a step back to find common ground for investors to re-engage in Bitcoin price action.
- Expect a slip below $40,000 before reattaching $44,088 and booking further gains.
Bitcoin (BTC) price action sees bulls struggling to keep the positive momentum going as bears stand firm at $44,088. At the moment, $50,000 is still nowhere near in sight, and investors are getting impatient about when the promised rally in BTC will finally kick in. Expect more interest to start fading, with investors pulling their funds and seeing a return to sub $40,000 before price reaches an attractive discount.
Expect sideways to softly lower Bitcoin prices – $40,000 could be tested
Bitcoin bulls are getting hammered after several attempts to break above $44,088 have been rejected, with bulls folding on their positions with each attempt. Bears are slowly but surely building up more and more volume, which could start weighing even further on both BTC price and sentiment. For now, investors will want to wait to engage any further or engage in some soft selling of their stake in the cryptocurrency.
BTC price will start to go sideways or slip lower towards $39,780, which means breaking below the psychological $40,000 handle again. At $39,780, the low from September comes into play and the monthly S1 support level. As this area has proven itself as support, expect it to hold again as of January 10, with this time possibly more investors weighing in and running price action back up towards $50,000 as the Relative Strength Index (RSI) will be trading deeply in the oversold area.
XRP/USD daily chart
A shift in global sentiment could be the catalyst Bitcoin participants are waiting for. A quick shot through the $444,088 barrier would see a massive inflow of funds with buy-side demand running dry as offers only start quoting at higher prices. This would quickly bring Bitcoin price back to $48,760, just inches away from $50,000. With that, the proper uptrend will have started for 2022, with more upside to come.