Bitcoin (BTC) is in a downward correction as the cryptocurrency struggles below its moving average lines. Since July 12, the BTC price has been below the moving average lines and further upward movement has been prevented.
Bears are selling at the 21-day line SMA. Buyers have failed to keep the price above the psychological $20,000 level. If buyers buy at lower price levels, Bitcoin will recover and break out above the 21-day line SMA. The bullish momentum will extend to the 50-day line SMA. In other words, Bitcoin will rally to the high of $24,000. On the other hand, if Bitcoin falls back and breaks below the $18,638 support, the BTC price will fall to the low of $17,605.
Bitcoin indicator reading
Bitcoin is at level 40 of the Relative Strength Index for the period 14. The cryptocurrency is still in a downtrend and is capable of further decline. The BTC price bars are below the moving average lines, which gives the impression of a further decline. Bitcoin is below the 40% area of the daily stochastics. The market is in a bearish momentum, even though the momentum is unstable.
Technical indicators:
Major Resistance Levels – $30,000 and $35,000
Major Support Levels – $20,000 and $15,000
What is the next direction for BTC?
Bitcoin is in a downward correction and the price movement is characterized by small indecisive candles called doji. The candlesticks indicate that buyers and sellers are undecided about the direction of the market.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing funds.
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