Bitcoin Struggles above $43,000 as It Reaches Another Overbought Region

Mar 24, 2022 at 09:25 // Price
Coin Idol
Bitcoin  is struggling to maintain bullish momentum

Bitcoin (BTC) is struggling to maintain bullish momentum above the high of $42,427. The bulls have broken through the initial resistance at $42,424. Currently, Bitcoin is facing rejection at a high of $43,333.

On March 22, BTC was rejected at the recent high and fell to the low of $41,906. Today, BTC/USD is trading at $43,460 at press time. If buyers break through the current resistance at $43,333, the bitcoin price will go up.

There is a tendency for the bullish momentum to extend to the high at $45,400. Certainly, a breakout above $45,400 will propel Bitcoin to the high of $50,000. Still, the bears have strongly defended above resistance. Bitcoin will fall above the moving averages as it turns away from overhead resistance. In other words, the largest cryptocurrency will be forced to move between the $41,000 and $45,400 levels. If the bears exceptionally break below the moving averages, the market will fall to a low of $37,000.

Bitcoin indicator reading

Bitcoin is at level 58 on the Relative Strength Index for period 14. The RSI has risen as Bitcoin continues to push higher. Bitcoin is capable of further upward movement. The upward momentum will continue if the BTC price breaks the resistance line of the ascending channel and closes above it. Nevertheless, Bitcoin is above the 80% area of the stochastic on the daily chart. Further upward movement is unlikely as the market has reached the overbought zone.


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?

On the 4-hour chart, BTC/USD is in an uptrend. The BTC price is recording higher highs and higher lows. The price indicator shows a possible upward movement of the cryptocurrency. At the March 22 uptrend, a retracement candlestick tested the 50% Fibonacci retracement level. The retracement suggests that BTC will rise to the 2.0 Fibonacci extension level or $45,840.


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.

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