Bitcoin Holds above $28,000 Support as Bulls Have Temporary Bearish Break

The price of Bitcoin (BTC) has continued its downward trend after the largest cryptocurrency lost the psychological price level of $30,000 on May 9. After 48 hours, Bitcoin failed to hold above the $30,000 support while the market fell back to the low of $26,854.

The current slump has also undercut the $28,800 support, giving the bears the full advantage to push the BTC price to the $20,000 low. It seems that the bulls are not giving up as the price is rising above the support at $28,000. 

If the bulls overcome and hold the $28,000 support, Bitcoin will regain its bullish momentum. However, if selling pressure persists, the cryptocurrency will continue to fall between the $20,000 and $25,000 lows. In the meantime, the BTC price is trying to pull itself above the $28,000 support. Selling pressure will ease if the market holds above the $28,000 support.

Bitcoin indicator reading  

Bitcoin is at level 23 of the Relative Strength Index for the period 14. Likewise, the BTC price is below the 20% range of the daily stochastic. The price indicators show the oversold condition of the cryptocurrency. The oversold condition was overridden due to the strong downtrend. The BTC price has a bearish crossover. That is, the 21-day line SMA crosses below the 50-day line SMA, indicating a sell order. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend. 

Technical indicators:  

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

Major Support Levels - $60,000 and $55,000

What is the next direction for BTC?

Bitcoin risks another decline as it moves above $28,000 support. Bulls need to defend the $28,000 support to prevent Bitcoin from further decline. On the weekly chart, a candlestick body tested the 78.6% Fibonacci retracement level on March 21. The retracement suggests that Bitcoin will continue to fall to the 1,272 Fibonacci extension or $23,618.  

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.