Bitcoin Slumps as Buyers Fail to Keep Price above $39,000 Overhead Resistance

Bitcoin’s (BTC) price slumps after four days of intense struggle to break above $39,000 overhead resistance. Today, the largest cryptocurrency has fallen to the low of $36,633 at the time of writing.

The earlier bullish scenario has been invalidated. Buyers could not break the $39,000 overhead resistance to resume upside momentum.

Bitcoin should have risen to the highs of $44,000 and $48,000 if the resistance zones are cleared. Nonetheless, BTC's price is declining after facing rejection from the recent high. The bearish scenario is that if the BTC price turns down from the overhead resistance, the selling pressure will resume. At first, the bears will break the $37,000 support and pave the way for further downsides. Bitcoin may reach the lower price range at $33,600. BTC/USD will further decline to $30,000 if the lower price is breached.

Bitcoin indicator reading

Bitcoin price is at level 34 of the Relative Strength Index for period 14. The RSI is falling as Bitcoin approaches the oversold region of the market. BTC price bars are still below the moving averages which indicate a further downward move. The uptrend will resume if the bulls break above the moving averages. Bitcoin has already fallen below the 20% area of the daily stochastic. It indicates the market has reached the oversold region.  

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?

Presently, BTC/USD is fluctuating between $33,600 and $39,000 price levels. The crypto has fallen to the middle of the price range. The current support is likely to hold as the market reaches the oversold region. However, the range-bound move is likely to continue because of the presence of Doji candlesticks.

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.