Bitcoin Declines above $20,000 as Bulls Fail to Sustain Recent Rally

On July 8, the Bitcoin (BTC) price rose to a high of $22,425, but was pushed back. The price movement was represented by a long candle wick.

The candle wick indicates that there is strong selling pressure at higher levels. Bulls could not sustain the bullish momentum due to lack of buyers at higher price levels. 

In the last three days, the BTC price has been trading between the moving average lines. The cryptocurrency will fall to the $20,000 psychological price level if Bitcoin declines and falls below the 21-day line SMA. If the 21-day line SMA holds as support, the cryptocurrency will continue a new uptrend and regain the previous highs of $21,675 and $23,010. A break above these price levels will catapult Bitcoin to the psychological barrier of $30,000.

Bitcoin indicator reading

Bitcoin is at level 40 of the Relative Strength Index for period 14. The cryptocurrency is in the downtrend zone and is capable of regaining the previous low above the $20,000 support. The BTC price is above the 21-day line SMA, but below the 50-day line SMA, indicating a possible fluctuating movement of the cryptocurrency. Selling pressure will resume if the price falls below the 21-day line SMA. Bitcoin is below the 80% area of the daily stochastic. The market is in a bearish momentum.

Technical indicators:  

Major Resistance Levels - $30,000 and $35,000

Major Support Levels - $20,000 and $15,000

What is the next direction for BTC?

Bitcoin is in a downward movement after rejecting the high at $22,425. The cryptocurrency will continue to fall if the price drops below the 21-day line SMA. In the meantime, the BTC price is hovering above the price level of $20,400.

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 research before investing funds.