Bitcoin Holds Above $44,000 Support, Further Downside Likely

Aug 19, 2021 at 08:32 // News
Coin Idol

After rejecting the $48,000 resistance zone, the price of Bitcoin (BTC) has fallen to the low of $44,090.

Bitcoin (BTC) Price Long-Term Prediction: Bullish

Today, the bitcoin price is likely to fall further as it is rejected at the $45,100 resistance zone. At the first rejection at $48,000, the BTC price fell back to support at $44,000. 

Over the past three days, the cryptocurrency price has been fluctuating above the $44,000 support. Nevertheless, selling pressure is likely to extend to the $42,000 breakout level. 
BTC/USD is likely to find support above the breakout level to resume the uptrend. However, if the bears fall below the $42,000 support, the downtrend will resume. Bitcoin will fall back to the previous trading range between $30,000 and $40,000. On the upside, the break of the $48,000 resistance will catapult the cryptocurrency price to the second stage of the upside momentum. Today, the BTC price is falling and approaching the 21-day line SMA. 

BTCUSD( 1 Hour Chart) - AUGUST 19.jpg

Bitcoin (BTC) Indicator Reading 

On the daily chart, the BTC price is approaching the 21-day line SMA. The downtrend will continue if the price falls below the 21-day and the 50-day SMA. However, the uptrend will continue as long as the price bars above the moving averages. The cryptocurrency is at level 57 of the Relative Strength Index for period 14. Bitcoin is in the uptrend zone and is capable of moving higher. 

Technical Indicators: 

Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $40,000 and $35,000

BTCUSD( Daily Chart) - AUGUST 19.jpg

What is the next direction for BTC/USD?

BTC/USD is in a downtrend. The BTC price is posting a series of lower highs and lower lows. Today, the bitcoin price is moving above the $44,000 support. Meanwhile, the downtrend from August 17 has a candlestick body testing the 50% Fibonacci retracement level. The retracement suggests that bitcoin will fall to the 2.0 Fibonacci Extension level or $22,475.60.

Disclaimer. This analysis and forecast are the personal opinions of the author 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.

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