Bitcoin Price Analysis: BTC Lacks Conviction Near $45K, Is Buying Still valid!

Bitcoin’s (BTC) price looks exhausted after testing the $45,000 mark on Tuesday. The U.S Consumer Price Index (CPI), rose to 7.5% on a yearly basis in January 7%  beating the market expectation of 7.3%. As a result, the US Dollar Index (DXY) firmly trades above the 95.0 level.

  • Bitcoin (BTC) price consolidates near $45K on Thursday.
  • The price soared 38% from the January lows of $32,933.3.
  • BTC  hovers above 50 SMA still advocating for the current uptrend continuation.

BTC retreated from the higher levels in initial reaction to the US CPI data. As of writing, BTC/USD is trading at $43,362.67, down 2.33% for the day. The current market cap stands at $822,735,328,002 as per the CoinmarketCap.

US-based independent research firm Fsinsight reported that Bitcoin could rise by almost 500% and could test $200,000 in the second half of the year.

Is correction on cards!

On the daily chart, Bitcoin’s (BTC) price has seen a remarkable recovery from the lows made on January 24 at $32,933.33. However, investors are a bit exhausted near the descending trend line from the highs of $69,000. Moving further, the formation of the consecutive ‘Doji’ candlesticks near the highs indicates indecision among buyers.

Source: Trading view

BTC taking some positive clues from the placement of the 50 SMA (Simple Moving Average) at $42,674.90.

The Daily Relative Strength Index (RSI) holds near 64, still far from the overbought zone indicating that the market still has the scope of further upside reaction.

A sustained buying pressure would breach the bearish slopping line while aiming for $48,000. Next market participants will try to take out the $52,000 horizontal resistance line.

On the other hand, if the price breaks below the 50-SMA then sellers could test the psychological $40,000 level followed by the low of February 3 at $36,259.01.







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