Bitcoin Plunges To $38,580 as Buyers Fail to Keep Price Above Recent High

The price of Bitcoin (BTC) has continued to fall after crossing the $40,000 level.

Bitcoin (BTC) Price Long-Term Forecast: Bearish

On April 21, buyers tried to keep the BTC price above the moving averages but were pushed back. In other words, buyers pushed the BTC price to the high of $42,898 but could not maintain the uptrend. Sellers were on the spot and offered strong resistance to the bulls. The fierce rejection at the $43,000 resistance zone sent the bitcoin price lower. 

Today, bitcoin has fallen to the low of $38,560 at the time of writing. The current downward movement is approaching the low of $37,577, which was a previous support. 

The largest cryptocurrency has been holding above the previous support since February. If the BTC price holds and recovers above the $37,577 support, the cryptocurrency will rally above the moving averages or above the $40,000 high. The bullish momentum will extend to the resistance at $45,000. However, if the bears break below the previous low, bitcoin will drop to the low at $33,000.

Bitcoin (BTC) Indicator Reading 

The cryptocurrency is at level 36 of the Relative Strength Index for period 14. Bitcoin is falling and approaching the oversold area of the market. The price bars are below the moving averages, indicating further downward movement of the cryptocurrency. Similarly, Bitcoin is below the 20% range of the daily stochastic. Bitcoin has reached the oversold area of the market. The current downtrend is likely to end.

Technical Indicators: 

Key resistance levels - $65,000 and $70,000

Key support levels - $60,000 and $55,000

What is the next direction for BTC/USD?

Bitcoin is in a downtrend as the price breaks below the lower price range. The downtrend has extended to the low of $38,487. Meanwhile, on April 11, the downtrend tested the 78.6% Fibonacci retracement level. The retracement suggests that BTC will fall to the 1.272 Fibonacci extension level or the $36,990.10 price level.

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.