Bitcoin Struggles over $31,000 Support as Sellers Threaten to Short

Bitcoin's (BTC) upside is encountering resistance at the $34,300 resistance zone. Over the past two days, the cryptocurrency has been consolidating below the resistance zone due to a potential breakout.

However, Bitcoin was met with resistance as it fell to a low of $32,600. Nonetheless, Bitcoin is set to fall on rejection at the high of $33,900 and revisit support at $31,000. In the previous price action, the price of BTC fell to a low of $29,247 as bulls bought the dips.

In the first price auction, the uptrend was short-lived as it was pushed off at $34,000. If buyers break through the resistance at $34,300, the BTC price will resume its upward momentum to the previous highs. It is possible that the BTC price will rise to retest the $40,000 resistance. On the downside, Bitcoin risks falling to the $28,000 or $20,000 lows if the bears break the $31,000 support. In the meantime, BTC/USD is trading at $33,102 at the time of writing. 

Bitcoin indicator reading

Bitcoin is at level 40 on the Relative Strength Index for period 14. It is still in the bearish trend zone and is capable of falling lower. BTC price is above the 25% area on the daily stochastic. This indicates that the market is in a bullish momentum. There is a possibility that the price will go up.

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 is consolidating above the $31,000 support level as bulls and bears continue to wrestle over the price. For the past month, the BTC price has been consistently fluctuating within a limited range. Buyers and sellers seem to be reaching equilibrium. Nonetheless, Bitcoin will develop a trend if the range-bound levels are broken.

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.