Bitcoin Slumps Again, Lacks Buyers at Higher Price Levels

The price of Bitcoin (BTC) has broken above the psychological $50,000 price level. Buyers are making a second successful attempt in ten days.

The current bullish momentum has been holding for the last 48 hours as the bulls have broken above the $48,000 resistance. BTC/USD has a chance to reach a high of $51,200 if the bullish momentum is maintained.

Currently, RSI is at level 62 and bitcoin has room to rally higher. However, the lack of buyers at higher price levels will hinder Bitcoin's upside momentum. In the recent previous price action, the bulls could not sustain the bullish momentum as the market reached the overbought zone. Moreover, there are not enough buyers at higher price levels. If buyers cannot sustain the bullish momentum today, the BTC price is likely to fall sharply.

Bitcoin indicator reading

BTC price is above the 21-day and 50-day SMA, indicating further upward momentum. The 21-day and 50-day SMAs are sloping upward, indicating an uptrend. Bitcoin is at level 61 on the Relative Strength Index for period 14, indicating that Bitcoin is in the bullish trend zone and above the 50 midline. Bitcoin is above the 80% area of the daily stochastic. It indicates that the market has reached the overbought region. The cryptocurrency is likely to fall as seen in the price action.

Technical indicators:

Major Resistance Levels - $65,000 and $70,000

Major Support Levels - $40,000 and $35,000

What is the next direction for BTC/USD?

BTC/USD is expected to rise despite the initial resistance. In the meantime, the September 1 uptrend has a candlestick testing the 50% Fibonacci retracement level. The retracement suggests that Bitcoin will rise to the 2.0 Fibonacci extension level or the $50,969 level.

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 funds.