Bitcoin Is In A Tight Range: A Breakout Or Collapse Is Imminent

Oct 03, 2022 at 11:42 // Price
Coin Idol

Bitcoin (BTC) price has continued its selling pressure as the price action is dominated by doji candlesticks.

On September 22, the BTC price rose to the high of $19,524 and remained above the $19,000 support.

Bitcoin price long term forecast: bearish

Today, Bitcoin is trading at $19,209 as of press time. Last week, the price moved stably above the $19,000 support. The price movement was marginal due to indecision between buyers and sellers about the direction of the market. The cryptocurrency traded between $18,200 and $20,000.

One condition that buyers need to meet in order to resume the uptrend is to break the resistance at $20,000 or the 21-day line SMA. Moreover, a price recovery will break through the resistance levels and rally to the upper resistance at $25.205. Nonetheless, sellers have more advantages over buyers as Bitcoin is trading in the downtrend zone. A break below the $18,200 support will cause Bitcoin to fall to the low of $17,605.

Bitcoin (BTC) indicator reading

Bitcoin's sideways movement has caused it to remain stable at the 44 level of the Relative Strength Index for the 14 period. BTC price bars are below the moving average lines, indicating further selling pressure. The moving average lines are tilted horizontally due to the long span of the sideways trend. Buyers have taken control of the prices as Bitcoin falls below the 20% area of the daily stochastic.

Technical Indicator

Major resistance zones: $30,000, $35,000, $40,000
Key support zones: $25,000, $20,000, $15,000

BTCUSD (Daily Chart ) - October 3, 2022.jpg

What is the next direction for BTC/USD?

Bitcoin is in a tight trading range, and the direction of the market is unknown based on the Doji candlesticks. Bitcoin's next direction will be an uptrend if the price rises above the 21-day line SMA. Otherwise, it will be a downtrend if the sellers overcome the support at $18,200.

BTCUSD( 4 Hour Chart) - October 3 (1).png

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 in funds.

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