Bitcoin dips below $42K as new forecast says breakout ‘most probable outcome’ for BTC price

Bitcoin
(BTC)
returned
closer
to
$40,000
on
Thursday
as
$44,000
resistance
proved
too
much
for
bulls
to
overcome.


BTC/USD
1-hour
candle
chart
(Bitstamp).
Source:
TradingView

Buying
another
dip

Data
from

Cointelegraph
Markets
Pro

and

TradingView
 showed
BTC/USD
shedding
around
4%
in
24
hours
on
Jan.
14.

The
pair
had
topped
$44,450
on
Bitstamp
before
the
retracement
kicked
in,
this
seeing
local
lows
of
$41,780.

While
disappointing
for
those
hoping
that
the
worst
of
the
pullback
was
over,
analysts
appeared
unsurprised
by
the
move,
which
they
said
could
resolve
via
a
fresh
test
of
$40,000
support.

Popular
trader
Pentoshi
also
appeared
to
get
his
wish—BTC
“sweeping”
lows
below
$42,000
in
what
he
had
previously

identified

as
a
prime
opportunity
for
entry.
He
added
that
$46,000
could
be
next.

Looming
large,
however,
was
another
“death
cross”
chart
construction
on
BTC/USD,
a
classic
signal
warning
of
bearish
conditions.

As
Cointelegraph
previously
reported,

a
death
cross
occurs

when
the
declining
50-day
moving
average
crosses
under
the
200-day
moving
average.
The
feature
is
somewhat
rare
but
has
not
always

resulted

in
bearish
behavior
thereafter.


BTC/USD
1-day
candle
chart
(Bitstamp)
with
50-day,
200-day
moving
averages.
Source:
TradingView

Upside
conclusion
still
on
the
cards

Looking
ahead,
analysts
at
trading
suite
Decentrader
remained
bullish
on
mid-term
price
action,
acknowledging
that
another
dip
into
the
$30,000–$40,000
range
may
yet
occur.



Related: Top
or
bottom?
Traders
at
odds
over
whether
Bitcoin
will
keep
rising

The
two-month
downtrend
from
early
December
was
ripe
for
disruption,
they

argued

in
a
market
update
issued
Jan.
14,
and
the
upside
was
“likely”
over
a
cascade
lower.

“It
is
our
view
that
we
may
need
to
see
some
further
ranging
between
$44,000
and
potentially
$38,000
before
an
eventual
breakout. This
ranging
is
likely
to
cause
more
pain
and
misery
for
any
traders
who
try
to
impatiently
front-run
major
moves
before
they
are
ready,”
the
update
summarized.

Encouraging,
Decentrader

added
,
was
funding
rates
slowly
becoming
more
consistently
negative
as

sentiment
finally
flipped
to
expecting
further
downside


healthy
conditions
for
a
squeeze
to
the
upside.

“Given
the
current
fundamentals
of
Bitcoin
and
the
size
and
consistency
of
the
downtrend
over
the
past
two
months,
we
do
believe
that
a
move
out
of
the
range
to
the
upside
is
the
most
probable
outcome
eventually.”


BTC
funding
rates
chart.
Source:
Coinglass

read original article here