Yesterday, Bitcoin rebounded above the $45,000 support and rallied above the $50,000 high. Buyers are still struggling to push the price to the previous highs. In the previous price action, the bulls fail to break the resistance at $58,000.
Consequently, the BTC price crashed on the downside. The crash is not unconnected with the overbought region of the market. In the first breakdown, the market crashed to $48,000 low. The bulls promptly buy the dips to push the price to $54,000 high.
The upward move faced another rejection from the recent high. This resulted in further selling as Bitcoin plunged again to a $45,000 low. After the second breakdown, the price consolidated above the current support and resumed upward. The upside momentum will resume if buyers push BTC price above $54,000 support. Nevertheless, the downtrend will resume if buyers lose $45,000 support.
Bitcoin price has retraced and found support above the 21-day SMA. The uptrend will continue if the 21-day support holds. The cryptocurrency is at level 57 of the Relative Strength Index period 14. It indicates the market is in the uptrend zone and the price has enough room to rally on the upside.
Bitcoin price is holding above the 21-day SMA for a possible upward move. In other words, the price is consolidating above the $45,000 support. The downtrend will resume if the support is breached. Meanwhile, on February 22 downtrend; a retraced candle body tested the 38.2 % Fibonacci retracement level. The retracement indicates that BTC will fall to level 2.618 Fibonacci extension and reverse. That is the low of level $32,257.70. Presently, the market is rising to this level.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.