Bitcoin Recovers But Falls Below The $58,000 Mark

The Bitcoin (BTC) price is in a downtrend, although it is making an upward correction as it continues to recover. Price analysis by Coinidol.com.

Bitcoin price long-term forecast: bearish

Bitcoin has risen back above the $52,000 support as buyers push the price to the 21-day SMA barrier. If BTC price rises above the 21-day SMA, it will reach the 50-day SMA high. In other words, a break above the moving average lines will indicate the continuation of the uptrend. The largest cryptocurrency will rise to its previous highs of $64,000 and $70,000. 

In contrast, if Bitcoin moves away from the moving average lines, it will trade above the $52,000 support but below the moving averages. However, a break below the $52,000 support level will force Bitcoin to fall to its previous low of $49,000. The value of Bitcoin currently stands at $57,658.

BTC indicator reading

BTC prices are still below the moving average lines, indicating a possible decline. For example, Bitcoin is in an uptrend. There will be further selling pressure if the major cryptocurrency moves away from the moving average lines. However, it will rise until it rises above the moving average lines. The moving average lines are sloping horizontally due to the sideways movement.

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?

Bitcoin is in a trading range, above the $52,000 support and below the moving average lines. This move will continue if the resistance and support levels are not broken. Bitcoin crashes after hitting resistance at $58,000. The upside is uncertain as the cryptocurrency faces rejection at its recent high. 

On the downside, the bears will try to push Bitcoin back to the current support level of $52,000.

Coinidol.com reported on September 7 that the largest cryptocurrency fell to a low of $52,756 before recovering. 

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.