Bitcoin Nosedives Under $40,000 Support, can not hold above $42,000 High

Bitcoin (BTC) price slips below $40,000 after hitting a new high of $42,400 four days earlier.

Bitcoin (BTC) Price Long-Term Prediction: Bullish

BTC price falls from recent high of $42,400 as bitcoin breaks below $40,000 support. Over the past four days, buyers have struggled to break the recent high of $42,400. However, selling pressure will extend to support at $36,000. 

Now if Bitcoin finds support above the moving averages, BTC/USD will start a new uptrend. If buyers can break above resistance between $40,000 and $42,451 and bullish momentum continues, Bitcoin will initiate its second round of uptrend. In the meantime, the cryptocurrency is falling and trading at a low of $39,885 at the time of writing.

Bitcoin (BTC). Indicator Reading 

The cryptocurrency is below the 80% area of daily stochastics. This suggests that the altcoin is in bearish momentum as selling pressure is picking up. Bitcoin is above the moving averages, suggesting that the cryptocurrency asset is in an uptrend. Bitcoin price is at the 71 level of the Relative Strength Index for period 14, indicating that bitcoin is in the overbought zone and has no room to move up.BTC price is above the moving averages, indicating that the king coin is in the uptrend zone. 

Technical Indicators: 

Major Resistance Levels - $65,000 and $70,000

Major Support Levels - $40,000 and $35,000

What Is the Next Direction for BTC/USD?

The market is down after rejecting the recent high. Meanwhile, on July 26 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will rise, but will fall back to the level of the 1.272 Fibonacci extension or the level of $43,830.20, where it originated.

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.