The daily chart shows that Bitcoin since December 4 has been consolidating within a price range between 51,800 - 45,000.
It can also be seen on the daily chart that Bitcoin has been under bearish pressure below the 200 EMA and below the 21 SMA.
It is expected that in the next few hours, Bitcoin can bounce around 45,000 with targets towards the zone of the psychological level of 50,000 located around 0/8 of Murray.
On December 29, the eagle indicator touched the 5-point zone. This means that in the next few days, there could be a technical bounce above this level and Bitcoin could recover part of the losses of the last few days and reach the top of the range around 51,800.
A daily close below 45,000 will indicate an acceleration of the downtrend and could reach the psychological level of $40,000.
On the contrary, daily closing above the 21 SMA and 200 EMA and a break above the top of the range zone, could indicate a resumption of the uptrend and we could expect a movement towards the zone between 56,250 and up to the psychological level of 60,000.
Support and Resistance Levels for December 31, 2021
Resistance (3) 50,119
Resistance (2) 48,977
Resistance (1) 48,096
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Support (1) 44,923
Support (2) 43,750
Support (3) 40,505
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A trading tip for BITCOIN on December 31, 2021
Buy above 45,000 (bottom of the range) with take profit at 49,680 (200 EMA) and 51,800 (top of the range), stop loss below 43,750.
