Bitcoin’s downtrend has reached strong support at $39,600. The price formed a Doji candlestick pattern indicating indecision among the bulls and the bears.
Both moving averages are sloping down and the relative strength index (RSI) is near the oversold zone, indicating that the path of least resistance is to the downside. If bears pull the price below $39,600, the selling could intensify and the BTC/USDT pair could start its journey to the next strong support at $28,805.
On the other hand, if the price rises from the current level, the pair could rise to the 20-day exponential moving average ($45,876). If the price turns down from this level, it will suggest that the sentiment remains negative and traders are selling on rallies. That will increase the likelihood of a break below $39,600.
The bulls will have to push and sustain the price above the moving averages to indicate a possible change in trend.
The chart shows that the selling momentum picked up on a break and close below $45,456. The bulls are attempting to arrest the decline at $40,501 but the recovery attempt is likely to face strong selling near the 20-EMA.
If the price turns down from the 20-EMA, the bears will attempt to sink the pair below $39,600 and extend the downtrend.
Alternatively, a break and close above the 20-EMA could push the pair to the 50-simple moving average. If bulls push the price above this resistance, it will suggest that bears may be losing their grip.
Bitcoin fear and greed index on Tuesday, January 11, 2022, went from the extreme fear level of 23 to the level of 21 as per the alternative. me. The Fear and Greed index is a technique for assessing investors’ emotions toward the market.
Bitcoin is currently trading around $42,143.13, up 0.40%. In the last 24 hours, the highest it touched was $42,296.52 and the lowest was $39,796.57. Bitcoin has a current market cap of $39,796.57. It has a circulating supply of 18,925,762.00 BTC coins and a maximum supply of 21,000,000 coins.
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The Securities and Exchange Commission (SEC) alleged Monday that blockchain-based trading platform tZERO violated federal disclosure rules, fining the company $800,000 and issuing a cease-and-desist as part of a settlement with the firm. TZERO allegedly failed to properly disclose key information, including that it was sharing order information with a broker-dealer affiliate and Blue Ocean Technologies, a trading partner in Singapore that it later acquired, in accordance with federal regulations, according to the SEC’s order. The company apparently also did not file an amendment to its Form ATS with the SEC for more than two years after it began sharing this information, despite the fact that it was required to.
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