Bitcoin price has finally declined after failing to sustain above the $24,000 resistance zone.
After five days of consolidation below the resistance zone, the king coin declined. There are technical factors responsible for the decline. The daily stochastic and the RSI indicators have indicated that Bitcoin was trading in the overbought region of the market.
The implication is that sellers will emerge to push prices down. The daily stochastic indicates that BTC is in a strong bullish momentum while above the 80% range. The Relative Strength Index indicates that the coin has no room to rally because it is above level 75. The coin is falling and may find support above the psychological price level of $20,000. If the price finds support, Bitcoin will resume a fresh uptrend.
BTC price is falling and if it falls to the support above the 21-day SMA, the upward move will resume. A break below the SMAs will mean a downward movement of the coin. Alternatively, if the price breaks and closes below the trend line, it will indicate the reversal of the trend.BTC price is still above the 80% range of the daily stochastic.
Key Resistance Zones: $13,000, $14,000, $15,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin has resumed a downward move after five days of consolidation below the $24,000 resistance level. The Fibonacci tool has indicated a downward movement of the coin. On December 20 downtrend; a retraced candle body tested the 38.2 % Fibonacci retracement level. Its retracement indicates that BTC price is likely to fall to level 2.618 Fibonacci extension level. That is a low of $21,271.70.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.