The price of Bitcoin (BTC) has dropped marginally as it fails to break above the $24,000 overriding resistance. Breaking the overriding resistance would have signaled the resumption of the upward momentum.
However, as buyers failed to break the overriding resistance of $24,000, the bitcoin price was forced to resume selling pressure. The bitcoin price forms a series of lower highs and lower lows. When the price breaks below a previous low, the downtrend resumes. On the other hand, if the price breaks above a previous high, the current downtrend is considered to be over.
Today, BTC broke above the previous low, indicating a further decline in Bitcoin. Bitcoin has fallen and is fluctuating between the 21-day line SMA and the 50-day line SMA. The largest cryptocurrency will fall if the BTC price falls below the 21-day line SMA. This will force Bitcoin to retest the psychological price level of $20,000. Likewise, if Bitcoin finds support above the 21-day line SMA, the uptrend will resume. On the upside, if buyers keep the price above the 50-day line SMA, Bitcoin will rise and retest the $24,000 overhead resistance.
Bitcoin price is at the 51 level of the Relative Strength Index of period 14, which indicates that there is a balance between supply and demand. The cryptocurrency price is fluctuating between the 21-day line SMA and the 50-day line SMA, which indicates a sideways movement. The cryptocurrency is below the 80% area of the daily stochastic. This indicates that the market is in a bearish momentum.
Key Resistance Zones: $30,000, $35,000, $40,000
Key Support Zones: $25,000, $20,000, $15,000
Bitcoin is in an uptrend but struggling with resistance at $24,000. Selling pressure has eased as the cryptocurrency moves above the $21,745 price level. On the upside, the BTC price will regain momentum if it breaks above the $23,006 high.
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.