The Bitcoin (BTC) exchange rate has been on a positive run as the price broke out above the high of $48,000. Although buyers failed to sustain the bullish momentum above the $48,000 high, the BTC price fell back to support at $47,000.
Since October 1, buyers have made a concerted effort to resume upside momentum, but the cryptocurrency faces rejection at the recent high.
The bottom line is that bitcoin will continue to rise as long as the cryptocurrency's price remains above its moving averages. For example, if the price breaks through resistance at $48,000 and the bullish momentum continues, the BTC price will rally above the high at $51,000. However, the uptrend is likely to be threatened at the $52,000 resistance zone. Bitcoin will fall back below support at $48,000 if it is rejected at the recent high. At the time of writing, Bitcoin is trading at $47,664.
BTC is above the moving averages, which indicate that the cryptocurrency will continue to rise. Also, Bitcoin is at level 56 on the Relative Strength Index for period 14, indicating that the cryptocurrency is in an uptrend and can move higher. Bitcoin is above the 25% range of the daily stochastic. This suggests that BTC/USD has resumed a new uptrend.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $45,000 and $40,000
On the 4-hour chart, Bitcoin has risen above support at $42,000 and has reached resistance at $48,000. The market is consolidating above the $47,000 support but below the $48,000 resistance. Meanwhile, the October 1 uptrend has a candlestick body testing the 78.6% Fibonacci retracement level. The retracement suggests that BTC price will rise but will reach a reversal point at the Fibonacci extension of 1.272 or at $51,128.20.
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.