Bitcoin (BTC) price has risen above the moving averages and regained the psychological price level of $40,000. The cryptocurrency has reached a high of $41,115 at the time of writing.
All indications are that Bitcoin will continue to rise to retest the upper resistance of $45,000. Currently, the largest cryptocurrency is approaching an overbought area of the market. This will lead to a decline in the cryptocurrency. However, in a market with a strong trend, an overbought condition may not last and the cryptocurrency may continue its uptrend. BTC/USD is capable of recovering to the psychological price level of $50,000 if buyers overcome the resistance at $45,000.
However, if the bulls fail to overcome the overarching $45,000 resistance, BTC/USD will trade between $37,500 and $45,400.
Bitcoin is at level 53 on the Relative Strength Index for period 14, suggesting that Bitcoin is trading above the psychological price level in the bullish trend zone given the recent upward movement. The BTC price is trading above the moving averages indicating a possible upward movement.
However, the cryptocurrency is above the 80% range of the daily stochastic. This indicates that the largest cryptocurrency has reached the overbought region of the market. Can the buyers push Bitcoin further up as the sellers emerge in the overbought region?
Key resistance levels - $65,000 and $70,000
Key support levels - $60,000 and $55,000
On the 4-hour chart, BTC/USD has initiated an upward movement. On March 16, there was a false breakout above the resistance at $39,000. The BTC price rose to a high of $41,788 and then suddenly plunged below the $39,000 resistance.
Today, the bulls broke through the resistance at $39,000, while buyers are targeting the high at $45,000. Bitcoin will rise as long as it is above the moving averages. The uptrend will end if it breaks below the bullish trend line.
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.