Bitcoin Bulls Reclaim $20,000 Support As Bulls Buy the Dips

On June 18, the Bitcoin (BTC) price plunged to a low of $17,605 as bulls bought the dips. Immediately after the buying, the bitcoin price rallied to a high of $20,744. The upward correction was halted at the $20,800 resistance zone.

Bitcoin (BTC) price long-term forecast: bearish

The bears turned the $20,000 support into a resistance. In the last 24 hours, buyers failed to keep the BTC price above the $20,000 high. In the meantime, the BTC price fluctuates between $19,600 and $20,800. 

Bitcoin will recover to the high of $23,000 if buyers overcome the resistance at $20,800. Nonetheless, Bitcoin will fall and regain the previous low of $17,605 if the bullish scenario becomes invalid. On the upside, if Bitcoin regains the support at $20,000, it will fight against the resistance at $23,000. Likewise, bearish momentum will extend to the $15,000 low if Bitcoin regains the previous low of $17,605. 

Bitcoin (BTC) indicator display 

Bitcoin is at level 28 on the Relative Strength Index for period 14. The cryptocurrency is still trading in the oversold area of the market as no buyers have yet to show up in the oversold area. The BTC price is also below the 80% area of the daily stochastic. The recent upward correction has reached the overbought area. In this case, the BTC price is likely to fall back to the previous low. The 21-day line SMA and the 50-day line SMA are sloping downwards, indicating a downtrend.

Technical Indicators: 

Key resistance levels - $30,000 and $35,000

Key support levels - $25,000 and $20,000

What is the next direction for BTC/USD?

Bitcoin (BTC) price has fallen below the $20,000 support. The largest cryptocurrency risks another decline if it loses the $19,600 support. Meanwhile, there are bullish candlesticks above the $19,600 support as Bitcoin is trending up again. Bitcoin will regain its bullish momentum if it breaks the initial resistance at $20,800.

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.