Today, the price of Bitcoin (BTC) fell to a low of $47,928 as it broke below the $48,000 support level. The $48,000 price level has provided support for the upside momentum.
Sellers have the advantage to lower BTC as the price breaks below the $48,000 support. The initial decline will reach a low of $46,700. The subsequent decline will extend to the breakout level of the low at $42,000.
The bearish momentum will be invalidated if BTC price falls and finds support above the high of $47,000. Today, the BTC price is consolidating above support at $47,760, which was Bitcoin’s previous price level. The downtrend will resume if the bears break below the current support. Likewise, buyers will push the BTC price higher if they were able to defend the current support above $47,760.
Bitcoin indicator reading
BTC price has fallen to the 56 level of the Relative Strength Index of period 14. It indicates that Bitcoin is in the bullish trend zone and above the midline 50. It has room to recover to the upside. On the downside time frame, the cryptocurrency is below the 20% area of the daily stochastic. It indicates that the market has reached the oversold region.
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?
BTC/USD has resumed its downward movement as it is rejected three times at the $50,000 overhead resistance. The downtrend is likely to reach the previous low if Bitcoin loses the $48,000 support. Meanwhile, on the downtrend from August 29, a retracement candlestick tested the 38.2% Fibonacci retracement level. The retracement suggests that Bitcoin will fall to the 2,618 Fibonacci Extension level or the $44,767.10 level.
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.
