Bitcoin Pushes on the Upside; Can Bulls Sustain the Current Momentum Above $52,000?

Surprisingly, the price of Bitcoin (BTC) has risen to a high of $51,900. This current rally was made possible because the bulls bought the dips at $49,693.

This allows the BTC price to rise back above the previous support. Currently, the upward movement has stalled at the resistance zone at $52,000. In the last 24 hours, the cryptocurrency has fluctuated below the recent high to move higher. If the price action continues, BTC/USD could resume its uptrend or face another rejection at the recent high. If buyers push Bitcoin above the $52,000 resistance zone, the cryptocurrency will rise to the high at $55,000. However, in the meantime, buyers are finding it difficult to advance into the resistance zone. If the cryptocurrency deviates from the resistance zone, bitcoin will fall to the support at $49,600. Later, the cryptocurrency will dive back into a trading range between $49,600 and $51,000. 

Bitcoin indicator reading

Bitcoin is at level 66 on the Relative Strength Index for period 14. BTC price is likely to move higher, but is approaching overbought territory. Bitcoin is in a bullish momentum but above the 80% range of the daily stochastic. The cryptocurrency is already in the overbought region. The 21-day and 50-day SMAs are sloping upwards, indicating an uptrend.

Technical indicators: 

Major Resistance Levels – $65,000 and $70,000

Major Support Levels – $40,000 and $35,000

What is the next direction for BTC/USD?

Bitcoin has rallied to a high of $51,900 but is rejected at the recent high. The cryptocurrency is likely to fall as it approaches the overbought area of the market. Meanwhile, the September 2 uptrend has retraced a candlestick that tested the 78.6% Fibonacci retracement level. The retracement suggests that bitcoin will rise but will rebound at the 1,272 Fibonacci extension level or the $51,308 level.

Disclaimer. This analysis and forecast are the personal opinions of the author 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.

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