Bitcoin Hovers above $20,000 for a Possible Rebound

Bitcoin (BTC) exchange rate has been trading above $20,000 since June 19. The cryptocurrency's brief rally was staved off by the bears on June 21. The largest cryptocurrency is now forced to trade between $20,060 and $21,500. In short, the BTC price is trading at $20,450 at press time.

On the upside, the BTC price was pushed off at the high of $21,675 with a long candle wick. The long candle wick indicates that the region is a strong selling point. If the BTC price rises above the $20,000 support, it will break the $22,000 resistance zone. The bullish momentum will push the bitcoin price to the psychological $30,000 mark. Nevertheless, continued fluctuations above the $20,000 support will cause Bitcoin to fall back to the previous low. 

Bitcoin indicator reading 

Bitcoin is at level 31 on the Relative Strength Index for period 14. Buyers are emerging in the oversold region to push Bitcoin higher. BTC price is above the 25% area of the daily stochastic. Bitcoin is gradually resuming its uptrend. The 21-day line SMA and the 50-day line SMA are sloping downwards, indicating a downtrend.

Technical indicators:  

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

Major Support Levels - $25,000 and $20,000

What is the next direction for BTC?

According to the price indicator, the Bitcoin (BTC) price is likely to continue to decline as it trades just above the $20,000 support level. Meanwhile, on May 13 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that BTC will fall to the 1.618 Fibonacci extension level or $16,647.

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.