Bitcoin Holds Above $56,000 As Bears Try To Drive It Down

The price of Bitcoin (BTC) is in a sideways trend following the price crash on August 27. Bitcoin traded below the moving average line last week, but above the $58,000 support level.

Long-term forecast for the Bitcoin price: fluctuating

Today, the largest cryptocurrency fell below its current support and reached a low of $56,010. On the downside, Bitcoin has moved away from the moving average lines. In other words, the bears will try to push Bitcoin down to the $55,000 support. 

Since the price drop on August 5, Bitcoin has remained above the $55,000 support but below the moving average lines. However, should the bears break the $55,000 support, Bitcoin will drop to a low of $49,000. In the meantime, Bitcoin is valued at $56,894.

Bitcoin indicator reading

Bitcoin is trading in a downtrend zone, with price bars below the moving average lines. Bitcoin is poised for a decline while in the downtrend zone. The extended candle tails point to support at $55,000. This indicates strong buying pressure at lower price levels.

Technical indicators:  

Resistance Levels – $70,000 and $80,000

Support Levels – $50,000 and $40,000

What is the next direction for BTC/USD?

Bitcoin is currently trading above the psychological $50,000 mark. The price of the cryptocurrency is at $56,000 while the bears are trying to push it lower. On the downside, Bitcoin will rebound if it stays above the current support level of $56,000. In the meantime, selling pressure has eased as Bitcoin has retreated.

Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.