Bitcoin (BTC) price is in a downward correction, but it is limited to a narrow range. The bears have shown their superiority in the price battle over the bulls.
Bitcoin bulls have failed to keep the price above $43,000, while the bears continue to push Bitcoin to the low of $41,000. Nevertheless, the bulls have successfully defended the low at $41,000 as they have bought the dips at every opportunity. That's why BTC/USD is trading at $42,023 as of press time.
However, if the bears push the price of BTC below $41,000, the largest cryptocurrency will fall to a low of $39,600. Buyers will do everything they can to defend the crucial support at $39,600. On the other hand, if the BTC price falls and recovers above $39,600, the market will see an accelerated move to the high of $47,000. The bullish momentum could extend above the psychological price level of $50,000. Conversely, if Bitcoin breaks $39,600 support, it will fall drastically to a low of $30,000. This would plunge BTC/USD into a deeper correction. Over the past 48 hours, Bitcoin has fluctuated between the $41,600 and $42,700 levels.
Bitcoin has gradually fallen to level 36 on the Relative Strength Index for the 14 period. This indicates that Bitcoin is trading in the downtrend zone. The cryptocurrency will fall below level 30 of the RSI if it loses support at $41,000. Bitcoin is above the 50% area of the daily stochastic. The market is in a bullish momentum, but it is unstable as the price fluctuates.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $60,000 and $55,000
BTC/USD is still in a trading range as the cryptocurrency struggles in a tight range between $41,600 and $42,700. The price action will continue either up or down if the fluctuation range is 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.