Bitcoin Rebounds as Bulls Attempt to Retest the $19,891 High of 2017

Following its downward correction between $17,800 and $18,600, BTC rebounded twice to break away from the previous price range.

However, the breakout above $18,800 has not been convincing as price rallied to $19,400 high but retraced immediately. For the upside momentum to resume, buyers have to sustain the bullish momentum above $18,800. Presently, BTC is trading above $19,000 to retest the previous high. 

Certainly, BTC will rally above $20,200, if buyers can push BTC price above $19,400 resistance. Nevertheless, the upside momentum has been ongoing after one to three days of correction. The breaking of the recent high determines the continuity of the trend. Conversely, if the bulls fail to sustain the bullish momentum above $18,800, the crypto is likely to fall back to the previous price range of $17,800 and $18,600. 

Bitcoin indicator reading

The king coin is still trading above level 75 of the Relative Strength Index period 14. Bitcoin's recent upward move has been ongoing since October 7. In the same vein, BTC has been trading in the overbought region since October 21. The overbought condition is not holding because Bitcoin is in a strong bullish momentum. Besides, the coin will continue to rise as long as price is above the SMAs.

Key Resistance Zones: $13,000, $14,000, $15,000

Key Support Zones: $7,000, $6,000, $5,000     

What is the next direction for BTC/USD?

With the recent breakout, the Fibonacci tool indicates a further upward movement of the coin. On November 24 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the coin will rise and reach level 1.618 Fibonacci extensions. In other words, Bitcoin will rise and reach a high of $20,134.50.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.