Bitcoin Crashes Sharply But Recovers Above $26,000

The latest price analysis by Coinidol.com report, Bitcoin (BTC) price has dropped significantly to a low of $24,713, but has quickly recovered.

Bitcoin price long-term forecast: bearish

The largest cryptocurrency has returned above the $26,000 support level, but the downtrend seems to continue. On August 17, the market fell into oversold territory, which led to a massive decline. Bitcoin price is expected to fall even lower to the $26,000 support. At the time of writing, Bitcoin is worth $26,606.

Bearish momentum is likely to subside as the market approaches the oversold region. On the downside, the BTC price is expected to stay above $26,000 as the market is considered oversold. This means that the market will fluctuate between $26,000 and $29,000. In other words, Bitcoin will start to recover above the $26,000 support level. If the current support level is broken, the cryptocurrency value will fall much further to $25,389.

Bitcoin indicator display

Bitcoin has fallen to the Relative Strength Index level 21 for the period 14. This means that Bitcoin has entered the oversold zone of the market. Selling pressure is expected to ease once Bitcoin recovers. The Bitcoin price is likely to decline as the price bars are below the moving average lines. Even though the bitcoin price is still above the stochastic value of 25 on a daily basis, it is oversold.

Technical Indicators:

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

Key support levels – $20,000 and $15,000

What is the next direction for BTC/USD?

After the current breakdown, BTC/USD is now in a downtrend. The current decline came after a prolonged period of holding above the $29,000 support. Over the past month, bitcoin has been relatively consistent above $29,000.

As we reported on August 14, since July 14, the cryptocurrency price has been limited to a range of $28,500 to $30,500. As of August 14, 2023, neither the bulls nor the bears have broken out of this range. 

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.com. Readers should do their research before investing in funds.