After a successful breakout above $35,000, the Bitcoin (BTC) price has failed to hold above the $37,000 resistance zone.
Bears have taken advantage of the rejection to lower Bitcoin to the $31,000 support. Over the past 48 hours, Bitcoin has been in a downtrend. Today, the bears managed to break below the critical support at $34,000.
The implication is that the bears will push Bitcoin to the low at $31,000. In previous price action, the bulls have bought the dips when the market drops to $31,000 support. However, if the bears break $31,000 support and the bearish momentum continues, Bitcoin will drop to $28,000 or $20,000 lows. However, the bulls will buy the dips if the price reaches the $31,000 support. BTC/USD is trading at $33,554 at the time of writing.
BTC price has broken below the 21-day line SMA, which means that the price is below the moving averages. This means that the selling pressure is likely to continue downwards. Bitcoin is at level 43 on the Relative Strength Index for period 14. Bitcoin is in the downtrend zone and above the midline 50. BTC price is below the 60% area on the daily stochastic. This shows that the cryptocurrency is in a bearish momentum.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $40,000 and $35,000
Bitcoin is still trapped between the $31,000 and $40,000 price levels. The bulls and bears are not yet able to break the range-bound levels as the price battles continue in the range. BTC price is approaching the lower price range to break or retest the support level. If price drops lower and rallies above support, it will signal the resumption of an upward move. A break below support will accelerate selling pressure.
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.