Bitcoin Hovers Above $30,000, But Faces Strong Rejection at $32,000

Bitcoin (BTC) price is in a sideways movement as the downtrend is easing. Over the past week, Bitcoin has been trading within a limited price range.

Bitcoin (BTC) price long-term forecast: in range

The largest cryptocurrency traded between $28,000 and $32,000. In the last few days, Bitcoin moved above the psychological price level of $30,000. 

The upward movement ended at the $32,000 resistance zone. However, in a bull market a price rise above the $30,000 support is able to overcome the $32,000 high. On the downside, the $28,000 support is strongly defended by buyers. Bears made two attempts to break through this support on May 18 and 20, but were rebuffed. A break below $28,000 could signal the resumption of the downtrend.

Bitcoin (BTC) indicator reading  

Due to the upward correction, Bitcoin is at level 40 of the Relative Strength Index for the period 14. The largest cryptocurrency is capable of further decline, as it is in the bearish trend zone. Bitcoin is in a bullish momentum as it is above the 40% area of the daily stochastic. The moving averages are sloping downward, indicating a downtrend. The price bars are below the moving averages, indicating a downtrend. 

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 downward correction as the Fibonacci tool indicates a possible decline in Bitcoin. BTC/USD will decline if it loses the $28,000 support. Meanwhile, on May 12 downtrend; a retraced candlestick body tested the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will continue to fall to the 1,272 Fibonacci extension or $23,010.20.

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.