Bitcoin Trades above $19,000 as Sellers Challenge the Current Support

Oct 20, 2022 at 12:00 // Price
Coin Idol
Bullish momentum will extend above $20,000 resistance

Today, Bitcoin (BTC) price drops to the low of $18,900 as bulls buy the dips. As usual, BTC will rise but face rejection at the moving average lines.

Last week, the price moved in a narrow range between $18,900 and $19,900. The cryptocurrency will see a breakdown or a price recovery if the current narrow range continues unabated. A price recovery will catapult Bitcoin above the moving average lines. Bullish momentum will extend above $20,000 resistance. Conversely, a price slump will send Bitcoin to the low of $17,605. Meanwhile, BTC/USD is trading at $19,153 at the time of writing.

Bitcoin indicator reading

The BTC price is consolidating as it remains at the 45 level of the Relative Strength Index for the 14 period. The 21-day and 50-day lines SMA run horizontally along with the price bars indicating a sideways movement. The BTC price is falling as it is below the 40% area of the daily stochastic. The appearance of doji candlesticks indicates that buyers and sellers are in a phase of indecision.


Technical indicator  

Key Resistance Zones: $30,000, $35,000, $40,000

Key Support Zones: $25,000, $20,000, $15,000 

What is the next direction for BTC? 

Bitcoin is vulnerable to a decline as it continues to trade in the downtrend zone. The upside correction is about to be rejected as Bitcoin falls back to the current support. In the downtrend from October 18, BTC price corrected upwards and a candlestick tested the 78.6% Fibonacci retracement level. This means that Bitcoin will fall but will reverse at the 1,272 Fibonacci extension level or $18,952.27.


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 in funds.

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