Bitcoin (BTCUSD) Drops But Remains On a Uptrend

BTCUSD Drops Before Reaching the $45,000 Resistance

BTCUSD drops in price, thereby experiencing a decline, failing to breach the $45,000 resistance level. Despite encountering resistance during its initial attempt in early December, where it faced an immediate rejection and dropped to $40,200, subsequent efforts to approach this significant level were met with a similar outcome, with the price declining before testing the resistance.

BTCUSD Key Levels

Supply Levels: $45,000, $47,000
Demand Levels: $42,000, $40,200
However, it is noteworthy that, amidst the fluctuations below the $45,000 resistance, Bitcoin maintains an overall uptrend. The market consistently establishes higher lows along the central axis of its parallel channel. This pattern is anticipated to serve as a foundation for a potential rally towards the $45,000 resistance.

Analyzing the daily chart, the Bollinger Bands are converging around the candlesticks, suggesting a potential phase of price accumulation. This could manifest as the formation of a triangle structure, presenting an opportunity for bullish strategies. The daily Elders Force Index (EFI) line hovers near the equilibrium level.

Market Expectations

A closer look at the 4-hour timeframe reveals evident price accumulation, with the Bollinger Bands constricting around the candles. The Elders Force Index line, slightly below equilibrium due to the recent drop from attempting the $45,000 resistance, indicates the potential for an accumulation surge, aiming to breach the $45,000 level in the near future.

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