Bitcoin Bulls Struggle below $22,000 as It Targets the Previous Highs
Bitcoin (BTC) price is trading in the downward zone while recovering above the psychological price level of $20,000. Since June 19, the BTC price has been trading between $20,052 and $22,020.
The uptrend was stopped at the $22,000 resistance zone. To regain the bullish momentum, buyers need to overcome the resistances at $21,675 and $23,010. At the time of writing, bitcoin is trading at $21,368.
If the bulls break the high at $21,675 and the bullish momentum continues, Bitcoin will rally to the next resistance at $23,010. The cryptocurrency will continue its movement within the trading range if the bullish scenario is invalidated. Conversely, bitcoin may decline if it encounters rejection at the $22,000 resistance zone. The BTC price will decline to the support at $20,000. However, if the bears break the current support, the BTC price will fall to the low of $17,605.
Bitcoin indicator reading
Bitcoin is at level 36 on the Relative Strength Index for period 14. The BTC price is in a downtrend as buyers are pushing the it higher. The cryptocurrency price bars are below the moving averages, indicating a possible decline. BTC is above the 40% area of the daily stochastics. Bitcoin is gradually continuing its uptrend. The 21-day line SMA and the 50-day line SMA are sloping downwards, indicating a downtrend.
Major Resistance Levels - $30,000 and $35,000
Major Support Levels - $25,000 and $20,000
What is the next direction for BTC?
The price of Bitcoin is still fluctuating between $20,052 and $22,020. A break below $20,052 will signal the resumption of the downtrend. Meanwhile, on May 13 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that BTC will fall to the Fibonacci extension of 1.618 or $16,647.
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.
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