Bitcoin (BTC) price is in a downward correction as the bears try to break the support at $39,200.
Today, the BTC price fell to the low of $38,547, but then recovered. Since April 11, the bitcoin price has been holding above the $39,200 support, but fluctuating between $39,200 and $41,500. If the bears break below the current support today, the market will fall to the low of $37,000. The largest cryptocurrency has been holding above the $37,000 support since Feb. 21, with Bitcoin rising to a high of $48,000 in the last price action on March 13.
Buyers failed to sustain the bullish momentum as the market reached the overbought zone. Today, the BTC price has continued to fall. Nevertheless, buyers will vigorously defend the support level at $37,000. Perhaps Bitcoin will recover and resume the trend. It is unlikely that Bitcoin will revisit the previous low at $33,855. This would amount to panic buying and selling at the bottom of the chart.
Bitcoin has fallen to level 36 on the Relative Strength Index for the 14 period. The cryptocurrency is approaching the oversold area of the market. The cryptocurrency price is below the moving averages that make Bitcoin fall. The BTC price is below the 20% range of the daily stochastic. The market has fallen into an oversold region. The current selling pressure is likely to ease when the market reaches the oversold region.
Key resistance levels - $65,000 and $70,000.
Key support levels - $60,000 and $55,000
Bitcoin is in a downtrend as the price fluctuates below and above the $39,000 support. According to the price indicator, the market will continue to fall. Meanwhile, on April 11, the downtrend tested the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will fall but will reverse at the 1,272 Fibonacci extension level or $37,006.50.
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.