Bitcoin Faces Rejection at $47,000, Its Consolidation Could Trigger a Sharp Drop

After a four-day price battle, Bitcoin has begun the resumption of a downtrend. Today, the price of BTC has fallen to a low of $45,005 and further downside is possible.

The bulls have pushed Bitcoin to the high of $46,438 but could not sustain the bullish momentum above the high of $47,000. The downtrend becomes necessary as the cryptocurrency has reached an overbought condition since August 7. Initially, the BTC price will fall to the low of $42,000. 

This support was the breakout level of bitcoin. The uptrend will continue if the support holds. Buyers will have the opportunity to retest the $47,000 resistance zone. However, if the $42,000 support fails to hold, Bitcoin will continue to fall to $38,000 or $36,000. In the meantime, the BTC price is still hovering above the $45,000 support.

Bitcoin indicator reading

Bitcoin has fallen to level 67 on the Relative Strength Index for period 14. Sellers have emerged as Bitcoin falls into the overbought territory of the market. The cryptocurrency is below the 50% area of the daily stochastic. The BTC price is now in a bearish momentum.

Technical indicators: 

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

Major Support Levels - $40,000 and $35,000

What is the next move for BTC/USD?

BTC/USD is likely to come under selling pressure again after three weeks of uptrend. The cryptocurrency is facing a rejection at the $47,000 resistance zone. Meanwhile, the August 12 downtrend has tested the 38.6% Fibonacci retracement level with a candle retracement. It suggests that Bitcoin will fall to the 2,618 Fibonacci extension level or the $42,997.00 level.

Disclaimer. This analysis and forecast are the personal opinions of the author 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.