Bitcoin Consolidates Above $29,000 Support but Struggles below $32,000 High

The price of Bitcoin (BTC) is in a downward correction as it consolidates above $29,000 support. Today, the largest cryptocurrency is trading at $29,287 at press time.

Since the May 12 plunge, buyers have made desperate efforts to bring the cryptocurrency back to its previous highs. The bulls have failed to keep the BTC price above the $32,000 resistance. Consequently, Bitcoin is forced to fluctuate between $27,900 and $32,000. BTC/USD is trading in a tight range as it continues to fluctuate above the $29,000 support. If the bears break the current support to the downside, the market will fall to a low of $26,000. On the upside, a move above current support will catapult bitcoin to the psychological price level of $40,000. 

Bitcoin indicator reading  

Bitcoin is at level 32 of the Relative Strength Index for period 14, trading in the oversold region of the market. The cryptocurrency is below the 30% range of the daily stochastic. The market has resumed bearish momentum due to the rejection of the high at $32,000. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend. The 21-day line SMA acts as a resistance line for bitcoin.

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 is in a downward correction as it consolidates above $29,000 support. Bears are trying to break the current support while bulls are offering strong resistance. A doji candlestick with a protruding tail indicates that there is strong buying pressure at the current support. 

Meanwhile, the May 12 downtrend has shown a retraced candlestick body testing the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will continue to fall to the 1,272 Fibonacci extension or $24,382. 

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.