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Bitcoin holds above $20,790 Support as Demand Dries up at Higher Price Level

Bitcoin

coinidol.com 25 August 2022 12:00, UTC
  
Reading time: ~2 m

Bitcoin (BTC) price is in a downtrend as it holds above the $20,790 support. Since August 19, the BTC price has been indecisive due to the presence of doji and spinning tops small body candles. The price movement has been slow due to the indecision of buyers and sellers.

Buyers have managed to stop the recent price decline, but fail to regain bullish momentum as demand dries up at higher price levels. However, if the bears break the support at $20.790, the BTC price will continue to fall to $18,965. On the other hand, if the support at $20,790 holds and the BTC price achieves a recovery, Bitcoin will rally above the moving average lines. The bullish momentum will extend to the overriding resistance at $24,000. In the meantime, BTC/USD is trading at $21,738 at the time of writing.

Bitcoin indicator reading

Bitcoin is at level 42 on the Relative Strength Index for period 14. The cryptocurrency is in downtrend territory despite the recent uptrend. The BTC price bars are below the moving average lines, which will lead to a decline. Nevertheless, the BTC price is below the 40% area of the daily stochastic. The market is in a bearish momentum. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.

Technical Indicator

Key Resistance Zones: $30,000, $35,000, $40,000

Key Support Zones: $25,000, $20,000, $15,000

What is the next direction for BTC?

BTC/USD is moving above the $20,790 support. Selling pressure will pick up again if the current support is broken. On the weekly chart, a candlestick has tested the 78.6% Fibonacci retracement level on March 28. The retracement suggests that the BTC price will fall to the Fibonacci retracement level 1.272 or $11,822.39.

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 own research before investing funds.


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