The price of Bitcoin (BTC) has been on a positive trend after the cryptocurrency broke through resistance at $48,000. Today, buyers maintained the bullish momentum above the $48,000 support.
However, buyers are finding it difficult to break above the high at $48,489. The upside move has temporarily stalled. Yesterday, buyers pushed the BTC price to the high of $48,429 but were pushed back.
Bitcoin fell back to the low of $47,400 as bulls bought the dips. The BTC price has risen to the $48,500 resistance zone. On the upside, a rally above $50,000 is expected on a breakout above the $48,500 resistance. However, the bears will be a strong resistance at the psychological price level. If the buyers are successful, the price of BTC will rise to the previous highs of $50,500 to $52,500. However, if the bears provide strong resistance, Bitcoin will be forced to move between $48,000 and S50,000.
Bitcoin has risen to the 54 level on the Relative Strength Index for period 14. The cryptocurrency is now in the uptrend zone and is capable of moving higher. The BTC price has risen above the moving averages, which indicates a further upward price movement. However, the BTC price is above the 80% range on the daily stochastic. The cryptocurrency is now trading in the overbought zone of the market. We should expect sellers to emerge in the overbought region.
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $40,000 and $35,000
Since September 13, the price of BTC has been in an uptrend. The uptrend has stalled at the high of $48,429. It is likely that Bitcoin will resume its upward movement when the current resistance is broken. Meanwhile, the uptrend from September 15 has a candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that BTC price will rise but will initiate a reversal at the Fibonacci extension of 1.272 or at $49,688.
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.