The price of Bitcoin (BTC) remains in a downtrend as the largest cryptocurrency continues to fluctuate below the $42,000 resistance level.
Bitcoin (BTC) Price Long-Term Forecast: Bearish
Since April 11, buyers have made concerted efforts to break above the $42,000 resistance level. Bulls have already broken through the resistance level but failed to sustain the bullish momentum above it.
Buyers are struggling with an overbought region of the market. A break above the initial resistance could have pushed the cryptocurrency to regain the previous high of $45,000. The bullish momentum will extend to reach the overriding resistance at $48,000.
Today, the BTC price has moved away from the resistance zone at $42,000. At the time of writing, it is trading at $41,558. The bears will try to push Bitcoin to the lower price region. In other words, BTC/USD will continue to fluctuate between $39,200 and $42,000 for a few more days.
Bitcoin (BTC) Indicator Reading
Because of the recent upward movement, Bitcoin has risen to level 47 of the Relative Strength Index for period 14. The cryptocurrency is approaching the bullish trend zone for a possible uptrend. The BTC price bars are below the moving averages that are causing bitcoin to decline. The cryptocurrency is below the 80% range of the daily stochastic. It is in a bearish momentum. Bitcoin was previously in an overbought area of the market.
Technical Indicators:
Key resistance levels – $65,000 and $70,000.
Key support levels – $60,000 and $55,000
What is the next direction for BTC/USD?
Bitcoin is trading in a tight range and fluctuating below the $42,000 resistance level. Buyers have managed to keep the price above the psychological price level of $40,000. It will resume its uptrend when the initial resistance is broken. The downtrend will also continue if the bears break below the support at $39,000. In the meantime, the cryptocurrency is moving in a range between $39,200 and $42,000.
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.
Source: https://coinidol.com/bitcoin-remains-stable/