Bitcoin Holds above $34,000 Support, Poises to Reclaim the $40,000 High

Bitcoin (BTC) survives bearish onslaught above the $34,000 support. Today, sellers pushed BTC's price to the $34,500 low and it rebounded above the current support. This will be the third time the bears will be attempting to break the $34,000 support.

In the two previous attempts on May 29 and 30, the bulls defended the support as Bitcoin rallied to the high of $36,400. Bitcoin would have fallen to the lows of $30,000 and $28,000 if the bears successfully breach the $34,000 support. 

One other thing that could have happened is the creation of tension and panic selling as the BTC price approaches the low of $20,000. On the upside, buyers have an uphill task to jump over the hurdle at $40,000. A breakout above $40,000 will propel BTC's price to rally above $46,000. Meanwhile, Bitcoin is trading at $36,738 at the time of writing.

Bitcoin indicator reading  

The crypto is at level 37 of the Relative Strength Index period 14. It indicates that the crypto is in the downtrend zone. Since the crypto’s price is below the 21-day and 50-day SMA, there is a tendency for the crypto to decline on the downside. BTC price is also above the 40% range of the daily stochastic. This indicates that the market has bullish momentum.

Technical indicators:  

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

Major Support Levels – $50,000 and $48,000

What is the next direction for BTC/USD?

Following its rebound above the $34,000 support, buyers are attempting to push BTC's price upward. Meanwhile, on May 24 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that Bitcoin will rise to level 1.618 Fibonacci extensions or level $45,497.60. Bitcoin will attain the Fibonacci level if the bulls break resistance at $40,000.

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.