Surprisingly, the price of Bitcoin (BTC) has risen to a high of $51,900. This current rally was made possible because the bulls bought the dips at $49,693.
This allows the BTC price to rise back above the previous support. Currently, the upward movement has stalled at the resistance zone at $52,000. In the last 24 hours, the cryptocurrency has fluctuated below the recent high to move higher. If the price action continues, BTC/USD could resume its uptrend or face another rejection at the recent high. If buyers push Bitcoin above the $52,000 resistance zone, the cryptocurrency will rise to the high at $55,000. However, in the meantime, buyers are finding it difficult to advance into the resistance zone. If the cryptocurrency deviates from the resistance zone, bitcoin will fall to the support at $49,600. Later, the cryptocurrency will dive back into a trading range between $49,600 and $51,000.
Bitcoin is at level 66 on the Relative Strength Index for period 14. BTC price is likely to move higher, but is approaching overbought territory. Bitcoin is in a bullish momentum but above the 80% range of the daily stochastic. The cryptocurrency is already in the overbought region. The 21-day and 50-day SMAs are sloping upwards, indicating an uptrend.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $40,000 and $35,000
Bitcoin has rallied to a high of $51,900 but is rejected at the recent high. The cryptocurrency is likely to fall as it approaches the overbought area of the market. Meanwhile, the September 2 uptrend has retraced a candlestick that tested the 78.6% Fibonacci retracement level. The retracement suggests that bitcoin will rise but will rebound at the 1,272 Fibonacci extension level or the $51,308 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.