The price of Bitcoin (BTC) is in a downward correction after the cryptocurrency fell to a low of $37,633.
Since April 30, the bitcoin price has held above the $37,633 support level while trending upward again. Currently, the BTC price is retesting the resistance at $39,223 in order to overcome it. The current resistance is the previous support from April 11. If the bulls overcome the current resistance, Bitcoin will be forced to move between $39,223 and $42,000. Today, the largest cryptocurrency is trading at $39,019.90 as of press time. BTC/USD risks another decline if the bulls fail to overcome the resistance at $39,223. The market will continue to fall to the low at $37,050. However, if the bears break below the support at $37,050, the BTC price will fall to $34,425.
Bitcoin is at level 44 of the Relative Strength Index for the period 14. The cryptocurrency is in the downtrend zone and below the midline 50. BTC/USD will continue to fall if it encounters rejection at the 21-day line SMA. On the other hand, if BTC price breaks above the moving averages, it will be a sign of resumption of the uptrend. Bitcoin has a bearish crossover. That is, the 21-day line SMA crosses below the 50-day line SMA, signalling a sell order.
Key resistance levels - $65,000 and $70,000.
Key support levels - $60,000 and $55,000
BTC/USD is in a downtrend as the largest cryptocurrency continues to trade in a range. Meanwhile, on April 11, the downtrend tested the 78.6% Fibonacci retracement level. The retracement suggests that BTC will fall, but will reverse at the 1.272 Fibonacci extension level or the $37,103.60 price level.
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 own research before investing funds.