Bitcoin Declines Toward Support at $44K-$45K as Analysts Await Price Bounce

Some price-chart indicators show the potential for a short-term bounce if support holds.

Jan 4, 2022 at 7:21 p.m. UTC
Updated Jan 4, 2022 at 8:15 p.m. UTC

Bitcoin (BTC) was declining toward the $44,000-$45,000 support zone at the time of writing and is roughly flat over the past 24 hours. Indicators suggest a possible price bounce, albeit limited toward the $55,000 resistance level.

BTC has been stuck in a month-long trading range after a near 20% crash in early December discouraged some buyers. Since then, the relative strength index (RSI) signaled a few oversold readings, although price gains have been muted compared to prior signals.

Katie Stockton, managing partner at Fairlead Strategies, a technical research firm, also noticed counter-trend signals which typically precede a price bounce.

A daily price close above $46,334 (at 8 p.m. ET) would confirm a positive signal, which would increase the possibility of a rise toward $55,644, according to Stockton.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio manager at Cannon Advisors, which does not invest in digital assets. Damanick does not own cryptocurrencies.