Bitcoin (BTC) price recovered from $39,223 support as the largest cryptocurrency rallied above the $40,000 psychological price level.
Bitcoin (BTC) price long-term forecast: bearish
The cryptocurrency price has reached the overbought zone of the market. The BTC price may face rejection at the recent high as sellers emerge to push prices lower. The current uptrend is facing tough resistance at the high of $41,600 as Bitcoin pulls back. However, in a market that is in a strong trend, an overbought condition cannot last.
Bitcoin will continue to move higher. If buyers are successful at the recent high, the Bitcoin price will regain the previous high at $45,000. Conversely, if Bitcoin turns from the recent high, the market will fall back to the support at $39,000, where it has been consolidating for the last four days. It is worth remembering that before the recent spike on April 11, the BTC price fluctuated between $39,223 and $40,500. In the meantime, the bitcoin price has dropped to $41,334 as we write this article.
Bitcoin (BTC) Indicator Reading
Bitcoin is still at level 43 of the Relative Strength Index for the period 14. The largest cryptocurrency is still in a downtrend and is capable of falling downwards. BTC/USD is vulnerable to decline as the cryptocurrency price is below the moving averages. The BTC price is above the 80% range of the daily stochastic. The market has reached the overbought zone of the market. Bitcoin's uptrend is doubtful.
Key resistance levels - $65,000 and $70,000.
Key support levels - $60,000 and $55,000
What is the next direction for BTC/USD?
On the 4-hour chart, the cryptocurrency has moved up into the overbought zone. The rejection has caused the BTC price to take a setback to the downside. Meanwhile, the uptrend from April 13; a retracement candlestick has tested the 78.6% Fibonacci retracement level. The retracement suggests that the bitcoin price will rise but reverses at the 1,272 Fibonacci extension level or $42,050.10.
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.