Bitcoin Faces Rejection at $39,000 but May Decline and Reverse at $33,950

The price of Bitcoin (BTC) has continued its downward movement as the bulls failed to overcome the high at $39,000.

The bears used the high at $39,000 as a selling point after breaking above the resistance at $45,000. The BTC price would have retested the overarching $45,000 resistance if the bulls have the upper hand.

If the bears resume selling at the $39,000 high, Bitcoin will continue to decline and fall to $36,000 and later to the $32,000 low. However, if the bulls hold above the support at $36,000, the BTC price will likely rise back above the current support. On the other hand, if the bears break below the $36,000 support and the bearish momentum continues, the bitcoin price will fall to either $33,000 or $32,000. In the meantime, the BTC price is trading at $35,379.90 as of press time.

Bitcoin indicator reading

BTC price is at level 33 on the Relative Strength Index for period 14. Bitcoin has fallen into oversold territory in the market. The current downturn has reached bearish exhaustion. The BTC price has fallen and is retesting the historical price level of January 22. The market rose and reached the high of $45,000 as the bulls bought the January 22 price dip. BTC/USD is below the 20% area on the daily chart's stochastic. The daily chart's stochastic indicates that Bitcoin is oversold.

Technical indicators:

Major Resistance Levels - $65,000 and $70,000

Major Support Levels - $60,000 and $55,000

What is the next direction for BTC?

The price of Bitcoin (BTC) is in a downtrend and has reached the low of $35,007. The cryptocurrency is now trading in the oversold region of the market. Meanwhile, on February 22, the downtrend has seen a retracement candlestick testing the 78.6% Fibonacci retracement level. The retracement indicates that the BTC price will fall, but will reverse at the level of the 1,272 Fibonacci extension or $33,950.70. The price action shows that Bitcoin has fallen to the low of $35,007.

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.