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

Jul 07, 2024 at 10:57 // Price
Coin Idol

Cryptocurrency analysts of 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.

BTCUSD (Daily Chart) -July 6.24.png

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.

BTCUSD (4-hour Chart) -July 6.24.png

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 Readers should do their research before investing in funds.

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