Bitcoin Recovers From Its 56,000 Dollar Low Amid Gloomy Sentiment

Cryptocurrency analysts of Coinidol.com report, the price of Bitcoin (BTC) has started its fall after buyers failed to sustain the price above the 21-day SMA on July 1.

Bitcoin price long term forecast: bearish

The largest cryptocurrency has fallen to $53,219, below the crucial support of $60,000 and the previous low of $58,555. Bitcoin has encountered bearish fatigue after breaching the expected price threshold. According to the price signal, BTC will fall and reverse at the Fibonacci extension of $1.272 or $55,089. Meanwhile, the current support level of $55,000 for Bitcoin will hold as the price rises to a high of $56,907. On the downside, selling pressure will ease if the current support level holds. Bitcoin is trading in a limited range above the $55,000 support but below the 21-day SMA resistance or the $60,000 high. In the meantime, Bitcoin is trading just above the $56,000 support.

Bitcoin indicator reading

The horizontal moving average lines are trending downwards, indicating a downtrend. Selling pressure has eased, but the 21-day SMA is below the 50-day SMA. Bitcoin has reached the oversold area of the market. The price of the cryptocurrency fell and tested its historical price level from May 1.

Technical indicators:

Key resistance levels – $70,000 and $80,000

Key support levels – $50,000 and $40,000

What is the next direction for BTC/USD?

The largest cryptocurrency has reached a bearish exhaustion, hitting the previous low of $56,711. On May 1, the cryptocurrency rebounded after reaching the current support level. Buyers pushed Bitcoin prices above the moving average lines and returned to the previous high of $70,000. Today, Bitcoin is rising and trying to repeat the price move from May 1.

Disclaimer. This analysis and forecast are the personal opinions of the author. They 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.