Today, June 6, the Bitcoin (BTC) price is recovering and reaching the high of $31,377, with the bulls trying to overcome the $32,000 resistance zone.
Since May 10, buyers have made several attempts to overcome the overriding resistance, but failed. On the upside, the BTC price will rise above the 50-day line SMA or the psychological price level of $40,000 if the buyers overcome the $32,000 resistance.
However, the largest cryptocurrency will continue its movement within the trading range if the bullish scenario is invalidated. That is, Bitcoin will continue its price movement above the 21-day line SMA, but below the 50-day line SMA.
Bitcoin is at level 51 of the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. The price of the cryptocurrency is between the moving averages, which indicates a possible movement within the trading range. Meanwhile, Bitcoin is above the 78% range of the daily stochastic. The market is in a bullish momentum.
Key resistance levels - $50,000 and $55,000
Key support levels - $40,000 and $35,000
Bitcoin is rallying above the $29,300 support and trying to regain the $32,000 resistance. Nevertheless, the Fibonacci analysis will hold if Bitcoin is rejected at the $32,000 overhead resistance and breaks the $29,300 support.
Meanwhile, on the May 12 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will continue to fall to 1,272 Fibonacci extensions or $24,798.94. The Fibonacci tool analysis will be confirmed if the previous low is broken.
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.