BTC / USD has been in sliding mode since Tuesday, when it hit resistance just below the $39,400 area, marked by the January 10 internal swing low. Overall, the cryptocurrency remains below the downside resistance line drawn from the Nov. 10 high. 10, which keeps the near-term outlook negative.

We think the shorts may remain in power for a while, but in order to be confident of a deeper decline, we would like to see a clear break below the $35,400 area of the Jan. 27 low. This could initially allow a slide to the $32,800 mark, marked by the Jan. 24 low, a break of which could lead to a more significant extension, possibly to the $29,190 area, which served as a summary for the cryptocurrency between May 19 and July 19.

Turning our attention to our short-term oscillators, we see that the RSI is below 50 and pointing down, while the MACD is running below its zero line and dashed line. Both indicators detect downside velocity and confirm the view of further declines in this cryptocurrency.

On the bright side, we would like to see a clear break above $41,000 before we start checking for a bullish reversal. Prices are already above the aforementioned downside line and could initially rise to the $44,200 area marked by the highs of Jan. 12 and 13, or the $45,700 area marked by the internal swing lows of Dec. 29 and 30. If the bulls don't want to stop there, we could see them climb to the $48,500 peak on Dec. 27.

Technical analysis of the 4-hour chart of BTC/USD.