Bitcoin Is Unstable Above $20,000 Support And Risks Further Decline

Oct 06, 2022 at 12:12 // Price
Coin Idol

Bitcoin (BTC) price is in an upward correction as it breaks above the moving average lines.

Bitcoin Price Long Term Forecast: Bearish

The largest cryptocurrency rose to a high of $20,469 on October 4 as buyers tried to maintain bullish momentum. Buyers will try to retarget the overhead resistance at $25,212 if the bullish momentum continues. Conversely, Bitcoin risks another decline if it moves down from the 21-day line SMA or the resistance zone at $20,000. 

The BTC price will fall below the 50-day line SMA and be forced into an area between the moving average lines. Sellers will try to push the cryptocurrency to the previous low at $18,200. In the meantime, the BTC price is still holding above the psychological price level of $20,000.

Bitcoin (BTC) Indicator Reading

Bitcoin's recent upward correction has pushed it to level 54 on the Relative Strength Index for period 14. Bitcoin is capable of further upward movement within the uptrend zone. The largest cryptocurrency is forced to move between $18,200 and $20,000. The cryptocurrency is likely to decline as it is below the 80% area of the daily stochastic. 

BTCUSD (Daily Chart) - October 6, 2022.jpg

Technical Indicator 

Key resistance zones: $30,000, $35,000, $40,000
Key support zones: $25,000, $20,000, $15,000 

What is the next direction for BTC/USD? 

On a lower time frame, bitcoin is in an uptrend as the price breaks above the moving average lines. The uptrend is stuck at the $20,469 resistance. Since October 4, the BTC price has been fluctuating below the recent high. The cryptocurrency will rise to $21,300 if the current resistance is broken.

BTCUSD (4 hour Chart) - October 6, 2022.jpg

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 in funds.

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