Bitcoin (BTC) price has dropped sharply after falling below the moving averages.
On March 2, the cryptocurrency encountered resistance at the high of $45,470 as the market fell back to the low of $38,154. This is the third time BTC/USD has had to overcome resistance at $45,000. Since February 10, the bears have been defending the overriding resistance as they sell on every rally.
Today, the BTC price fell to a low of $38,074 after dropping below the moving averages. The bears have gained the upper hand over the bulls as Bitcoin is trading in the bearish trend zone. As a result, Bitcoin will continue to fall in the downtrend zone. The bears are able to push the altcoin to the low of $36,000. The bearish momentum will be nullified if the largest cryptocurrency bounces above the current support. A bounce above current support will force Bitcoin above the moving averages. In the meantime, the market is consolidating above support at $38,000.
Because of the recent downtrend, Bitcoin has fallen to level 42 on the Relative Strength Index for the 14 period. The BTC price is below the centre line and is capable of further downward movement. The market is in a bearish momentum as Bitcoin is below the 50% area of the daily stochastic.
Meanwhile, the price bars are below the moving averages, which makes the cryptocurrency vulnerable to a decline.
Key resistance levels - $65,000 and $70,000.
Key support levels - $60,000 and $55,000
BTC/USD is in a downtrend, but the cryptocurrency has recovered after the January 22 price drop. The uptrend is slowed down by the overriding resistance at $45,000. Meanwhile, the downtrend from December 4 has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that the BTC price will fall, but will reverse at the level of the 1.272 Fibonacci extension or at $34,677. The price action shows that BTC/USD reversed above $34,677 on January 22.
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.