Bitcoin (BTC) price action has been capped below the $44,000 high. Moreover, Bitcoin has settled between $40,850 and $44,000. Buyers have made two failed attempts to reach the high at $44,000.
These failed attempts are tantamount to a bearish double top that forced the cryptocurrency to decline. The BTC price has fallen to a low of $41,736 as the bulls bought the dips. The upside correction faces another rejection at the high of $43,500. If the buyers overcome the resistance at $44,000, the bitcoin price will recover to the high of $47,000. However, if the bulls break the resistance at $47,000, the cryptocurrency will rally to $52,000. Bitcoin will then be out of the downward correction. Moreover, the upward momentum could resume. On the other hand, if the buyers fail to overcome the resistances, the downward correction will continue.
Bitcoin is at level 38 of the Relative Strength Index for the period 14. The cryptocurrency is in the downtrend zone and below the midline 50. Bitcoin is likely to remain in a trading range for a few more days as the price action is dominated by small indecisive doji candlesticks. The market is below the 50% range on the daily Stochastic chart. Bearish momentum has eased as the market consolidates above $42,000 support.
Major Resistance Levels - $65,000 and $70,000
Major Support Levels - $60,000 and $55,000
BTC/USD is in a fluctuation range as the price consolidates between $40,850 and $44,000. Currently, the price action has eased as Bitcoin consolidates above the $42,000 support. The rangebound movement is created by doji candlesticks. A price move above $42,000 support will push Bitcoin to break through resistance at the recent high.
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.