Bitcoin Pushes on the Upsides but Struggles below $21,000

Jul 07, 2022 at 10:24 // Price
Coin Idol
Bitcoin will recover above the 50-day line SMA

Bitcoin (BTC) price is in a downward correction as it struggles to break the 21-day line SMA.

Bitcoin price long-term forecast: bearish

A break above the 21-day line SMA will push the largest cryptocurrency asset into the $22,000 and $23,300 resistance area. Bitcoin will recover above the 50-day line SMA and resume its upward momentum once the resistance zones are overcome. 

The cryptocurrency will rise to the high of $32,000. On the other hand, if bitcoin turns away from the 21-day line SMA, BTC/USD will decline and regain the previous low at $17,605. In the meantime, the BTC price is trading at $20,329 as of press time. The price action is characterized by small indecisive candles called doji. Buyers and sellers are indecisive as Bitcoin fluctuates above the psychological price level of $20,000.

Bitcoin indicator display 

Bitcoin is at level 40 of the Relative Strength Index for the period 14. The largest cryptocurrency asset is in a downtrend and could fall. The 21-day line SMA is the resistance line for the price bars. The 21-day line SMA and the 50-day line SMA are downtrending and indicate a downtrend. Bitcoin is above the 40% area of the daily stochastic. The market is in a bullish momentum, but it is stuck below the moving average lines.

BTCUSD(Daily Chart) - July 7.png

Technical Indicators: 

Key resistance levels - $30,000 and $35,000

Key support levels - $20,000 and $15,000

What is the next direction for BTC/USD?

Bitcoin is trading just above the $20,000 support. The 21-day line SMA has slowed the bulls' upward movement. The bulls and the bears are still fighting to take control of the prices. However, market conditions favor the bears as Bitcoin is trading in the downtrend zone.

BTCUSD_(Daily Chart 2) - July 7.png

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 research before investing funds.

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