Bitcoin (BTC) price suffered a setback as the bears broke below the critical support level and hit a low of $33,450. Buyers responded and pushed Bitcoin to the previous high.
The upside move was short-lived as Bitcoin encountered rejection at the high of $35,650. This rejection confirms that the cryptocurrency will continue to fall, either to the previous low of $31,000 or $30,000. If Bitcoin falls, buyers will likely defend these support levels.
Perhaps the bulls will buy the dips to push the BTC price higher. In addition, traders who are in a range can trade the BTC price, which has been fluctuating for a month. On the downside, if the bears break below $30,000 support, Bitcoin will crash to $28,000 or $20,000. This will plunge Bitcoin into a deeper correction. There could be panic buying and selling of Bitcoin. However, a strong rebound above $33,000 support will catapult Bitcoin above $40,000. Meanwhile, Bitcoin has fallen to $32,911 at the time of writing.
Bitcoin has fallen to level 36 on the Relative Strength Index period 14. The BTC price will fall into oversold territory if the cryptocurrency falls below level 30. Bitcoin is below the 40% area of the daily stochastic. This indicates that the market is in a bearish momentum.
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $40,000 and $35,000
BTC/USD is in a range-bound movement. The BTC price has been fluctuating between $32,500 and $40,000 for the past month. Currently, the BTC price is testing the lower price area, which is the support of the horizontal channel. Assuming that the current support holds, a trader moving in the area needs to take a long trade. The stop loss should be placed below the $32,500 support.
The buy order should be terminated near the $40,000 resistance zone. Similarly, if the BTC price encounters rejection at the $40,000 resistance zone - then a short trade is required. Nevertheless, the stop loss should be placed above the $40,000 resistance zone. The sell order should be executed near the support zone.
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.