The Bitcoin (BTC) price appears to be under renewed selling pressure as the upside correction faces rejection at the $40,000 level. On July 4, the BTC price broke down to $37,500 and resumed its upward correction.
The upward correction ended as the cryptocurrency regained support at $38,000. The bears have already broken through the $38,000 support while the bulls were buying the dips. However, the upside correction was short-lived as the market resumed its downtrend.
On the downside, sellers are likely to push the BTC price to the low of $36,000 as they were attracted by the high of $40,000. The market will fall to $36,800 if the bears break the $38,000 support. On the other hand, the BTC price will rise again if the $38,000 support holds. At the time of writing, Bitcoin is trading at $38,000.
Bitcoin has fallen to level 57 on the Relative Strength Index for period 14. This indicates that Bitcoin is still in the up zone and above the 50 mid-line. The cryptocurrency is also below the 80% area of the daily stochastic. This indicates that the cryptocurrency is in a bearish momentum and another downtrend is likely.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $40,000 and $35,000
It is likely that Bitcoin will continue its downward movement as it faces a rejection of the $40,000 high. Meanwhile, on August 4 downtrend, a retraced candlestick body tested the 61.8% Fibonacci retracement level. The retracement suggests that Bitcoin will fall to the 1.618 Fibonacci extension level or the $34,454.30 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.