Bitcoin Slumps as Bulls Defend Critical Support at $34,000

Bitcoin's (BTC) price has been consolidating above the $35,000 support since June 5. The price levels have remained the same because the price action is characterized by small body indecisive candlesticks called Doji and Spinning tops. The candlesticks are indicating that buyers and sellers are undecided about the direction of Bitcoin.

In the meantime, buyers are defending the $35,000 support to hold the critical support at $34,000. A breakdown below these price levels will throw Bitcoin into a deeper correction. Similarly, if the price corrects upward and breaks the $39,000 resistance, the market will rally above $40,000 high. If the bullish momentum is sustained the rally will reach the high of $46,000. Nevertheless, if the bulls fail to break the recent high, BTC/USD will be in danger of further downside.

Bitcoin indicator reading  

BTC price has fallen to level 40 of the Relative Strength Index period 14. It indicates that the crypto is in the bearish trend zone and capable of falling. Bitcoin is in a bullish momentum as it is above the 40% range of the daily stochastic. The crypto is still in the downtrend zone as the price is below the 21-day and the 50-day SMA.

Technical indicators:  

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

Major Support Levels – $50,000 and $48,000

What is the next direction for BTC/USD?

BTC's price fell to $35,400 support after rejection from $39,000 high. According to the Fibonacci tool, the market is capable of a further downward move. On June 4 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This retracement indicates that Bitcoin will rise to level 2.0 Fibonacci extensions or level $31,802.30. From the price action, Bitcoin is still fluctuating above the $35,000 support.

Disclaimer. This analysis and forecast are the author’s personal opinions 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.