Bitcoin Rebounds above the $29,310 Support, Targets the $32,000 High

Bitcoin (BTC) is recovering and rising above support at $29,037.

The largest cryptocurrency had fallen below the 21-day line SMA or $29,476 on May 29. Bitcoin would have fallen back to the previous low if the bears broke the support at $28,003 on May 26, BTC price could regain the previous low at $26,591. 

Today, the rally has pushed the BTC price to the high of $30,635 at the time of writing. The current upward movement is likely to face resistance at the $32,000 resistance zone. In addition, the price indicator is approaching the overbought area of the market, suggesting that the current uptrend is likely to be short-lived. On the upside, a recovery above the 50-day line SMA is possible if the bulls overcome the $32,000 high. Bitcoin will then resume its upward momentum. Conversely, if the market turns away from the $32,000 resistance zone, it will decline and continue a downward correction. 

Bitcoin indicator reading  

With the recent upward movement, Bitcoin is at level 46 of the Relative Strength Index for the period 14. The cryptocurrency is still in a downward trend and could continue to fall. Meanwhile, the BTC price is above the 21-day line SMA, but below the 50-day line SMA, which will lead to a fluctuating movement of the cryptocurrency. Bitcoin is above the 55% area of the daily stochastic. The market is in a bearish but unstable momentum. 

Technical indicators:  

Major Resistance Levels - $50,000 and $55,000

Major Support Levels - $40,000 and $35,000

What is the next direction for BTC?

Bitcoin is rallying above the current support as it regains the previous highs. The bullish momentum could continue if the price holds above the 21-day moving average. Meanwhile, the May 12 downtrend has shown a retraced candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will continue to fall to 1,272 Fibonacci extension or $21,437.46. The Fibonacci tool analysis will be confirmed if the previous low is broken.

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.