Bitcoin Unable to Sustain Above the $35,000 High, Revisits the $31,000 Support

Jul 08, 2021 at 07:58 // News
Coin Idol
Bears will have the advantage to push the BTC price to the critical support above $31,000

Bitcoin (BTC) price has resumed its downward movement after failing to break above the $35,000 resistance level. This will be the fourth time Bitcoin will be rejected from the recent high.

Bitcoin has been falling for the past 48 hours as the price has reached the low of $32,818 at the time of writing. In this current downtrend, the bears will have the advantage to push the BTC price to the critical support above $31,000.

Still, it is unclear if the bearish momentum can be sustained below the $31,000 support. If the bears break below $31,000 support today, Bitcoin will drop low to $28,000 or $20,000. This bearish scenario will cause fear and panic in buying and selling Bitcoin. Conversely, if Bitcoin falls and finds support above $31,000 level, the current downtrend will be over. On the upside, if Bitcoin price returns above $31,000 support, it will rally and break through $35,000 resistance.

Bitcoin indicator reading

BTC/USD has fallen to the 41 level of the Relative Strength Index of the period 14. It is in the downtrend zone and is capable of falling downwards. The BTC price is below the 40% area of the daily stochastic. This indicates that the cryptocurrency is in a bearish momentum. The market is approaching $31,000 support and the 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend.


Technical indicators:

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

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

What is the next direction for BTC/USD?

Bitcoin is falling and approaching the support line of the horizontal channel. If the price breaks below the support line, it means that the downward selling pressure will continue. BTC/USD will continue to move in a range bound area by the support at $31,000. Otherwise, the downtrend will continue uninterrupted.


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.

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