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Bitcoin (BTC) Price Prediction: BTC Stays Quite Near $40k, Waiting For Next Catalyst

Bitcoin (BTC) price paused the previous three days of losses on Saturday. The price trades in a tight range with no meaningful price action. Bitcoin price rallied 25% since February 3 testing a critical resistance barrier. However, this uptrend failed to sustain after a second attempt, leading to a downswing.

  • Bitcoin (BTC) price trades modestly lower on Saturday.
  • The downside risk paused near the reliable support at $39,481 making bulls hopeful.
  • BTC could retest January’s lows of $32,933.33.

According to on-chain analytics firm Glassnode shows that despite price volatility, over 60% of the BTC supply has not left its wallet in a year. Furthermore, major exchange Binance order book activity showed “rugs” of support disappearing above $40,000 immediately before Friday’s dip to two-week lows.

Bitcoin looks for reversal on the daily chart

Bitcoin price action lost 50% from all-time highs of $69000 made on November 10. Later on, a short-term consolidation started in late January rallied exponentially from February 3, hitting a critical resistance barrier. However, BTC bulls lack the conviction to sustain this time uptrend after this attempt, leading to the current retracement.

Source: Trading View

A spike in the sell order BTC/USD might restest the daily demand zone, which is placed near the $36000 level followed by the lows of January 24 low of $32,933.33.

On the flip side, with a renewed buying pressure above the 50-day Simple Moving Average (SMA) the price could jump toward the highs of $45,000.

Next, market participants would keep their eyes on the critical 200-day Simple Moving Average (SMA) at $49,916.

Technical indicators:

RSI: The Daily Relative Strength Index (RSI) trades at 43 with a negative bias.

MACD: The Moving Average Convergence Divergence (MACD) holds above the midline but with receding bullish momentum.

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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