Bitcoin (BTC) price has fallen below the $45,400 breakout level. This means that Bitcoin is likely to fall back to the psychological price level of $40,000. Today, the BTC price has fallen to a low of $43,547 as of press time.
There is a probability of further downward movement of the cryptocurrency. Nonetheless, the largest cryptocurrency has fallen below the 21-day moving average during its slump.
In other words, bitcoin is trading above the red 50-day line SMA but below the blue 21-day line SMA. This means that the cryptocurrency is likely to fluctuate between the moving averages. Nevertheless, Bitcoin will resume the trend when the moving average lines are broken. For example, if the bears break below the 50-day line SMA, Bitcoin will fall and find support above $37,000. On the other hand, if the bulls break above the 21-day line SMA, BTC price will rise to the upper resistance at $48,000.
Bitcoin indicator reading
Bitcoin has fallen to level 48 on the Relative Strength Index for the 14 period. The largest cryptocurrency has returned to the bearish trend zone. This zone makes the cryptocurrency vulnerable to a decline. The cryptocurrency price is between the moving averages, which indicates that it will move in a certain range in the coming days. The BTC price has fallen below the 20% range of the daily stochastic. This means that the market has reached the oversold area. The 21-day line SMA and the 50-day line SMA are up, indicating an uptrend.
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $60,000 and $55,000
What is the next direction for BTC?
Bitcoin is in a downtrend as the price falls below the moving averages. Bitcoin is moving above support at $43,000. Meanwhile, the downtrend from April 1 has shown a candle body testing the 50% Fibonacci retracement level. The retracement suggests that Bitcoin will fall to the 2.0 level of the Fibonacci extension or $40,621.90.
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 own research before investing funds.
Source: Read Full Article