On September 13, the bitcoin price (BTC) came under selling pressure at the $22,794 resistance level. In the last 48 hours, the downtrend has been halted as Bitcoin consolidates above the $20,000 support.
Once BTC price rises above the 21-day line SMA, it will resume its uptrend. The bottom line is that buyers will emerge at the lower price levels to push Bitcoin higher. Buyers will revisit the resistance at $22,794 to break through it.
The market will rally above the $24,000 and $25,205 resistance levels if the buyers are successful. However, if sellers break the psychological price level of $20,000, Bitcoin could fall to a low of $18,675. However, buyers are expected to dynamically defend the current support level. The largest cryptocurrency will trade between $18,675 and $24,000 if Bitcoin loses its current support.
Bitcoin is at level 45 of the Relative Strength Index for period 14. The cryptocurrency is in the downtrend zone due to the recent decline. The BTC price may continue to decline as it is below the 21-day line SMA and the 50-day line SMA. It is below the 50% area of the daily stochastic. This indicates that the market is in a bearish momentum. The 21-day line SMA and the 50-day line SMA are horizontally sloping, indicating a previous sideways movement.
Key resistance zones: $30,000, $35,000, $40,000
Key support zones: $25,000, $20,000, $15,000
Bitcoin has reversed its trend after the recent drop to the psychological price level of $20,000. Meanwhile, the August 20 downtrend has a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that BTC will fall but reverse at the 1,272 Fibonacci extension level or $19,732.92.
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.