Bitcoin Struggles above $39,000 Support, May Face Another Decline

The price of Bitcoin (BTC) is in a downward correction after the price fell to a low of $38,038. Today, buyers are trying to push the cryptocurrency to the previous highs.

The BTC price is above the breakout level of $39,105 at the time of writing. On February 4, bitcoin rallied from the support at $39,000 and reached the overriding resistance at $45,000. To the upside, the BTC price will regain the previous highs if the previous price movement is repeated. 

On the other hand, if Bitcoin fails to recover, it could face resistance at the moving average of the 21-day line. BTC/USD will fall to the breakout level. The bears will try to drop below the $39,000 support. If the sellers are successful, Bitcoin will lose the $39,000 support and fall to the low of 36,000. Meanwhile, the price of BTC is struggling to break above the 21-day moving average.

Bitcoin indicator reading

The price of BTC is at level 39 of the Relative Strength Index for the period 14. The largest cryptocurrency is in a downtrend and near the oversold zone. The price bars of BTC are below the 50-day line and the 21-day moving average line, indicating a possible decline. The cryptocurrency is above the 50% area of the daily stochastic. The market is in a bullish momentum. The current bullish momentum is below the 21-day moving average line.

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?

The price of Bitcoin (BTC) is in a downward correction. The cryptocurrency is consolidating after falling to the low of $38,038. There is a minor price movement, stuck below the high of $39,252.00. A price recovery is enough to break out above the moving averages. Otherwise, Bitcoin risks a further decline.

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.