Bitcoin (BTC) price is in a downward correction after rising above the 21-day line SMA, but below the 50-day line SMA. In the last three days, the largest cryptocurrency has been trading between the moving average lines.
The first hurdle for buyers is to overcome the $22,000 resistance zone. In the July 16 uptrend, buyers pushed the bitcoin price to the high of $21,606, but it fell back above the 21-day line SMA. Today, the BTC price resumed a new uptrend to reach the overriding resistance of $22,000 again. If buyers overcome the $22,000 resistance, Bitcoin will rise to the next resistance at $23,010.
The bears will provide tough resistance at the $23,010 high. A break of the $23,010 high will send Bitcoin above the 50-day line SMA or the $24,000 high. The BTC price will resume its upward momentum if the buyers succeed above the 50-day line SMA. The initial strength of the bulls will be a rally to the psychological price level of $30,000. Conversely, the bullish scenario will be invalidated if buyers fail to break above the $22,000 resistance zone. Instead, bitcoin will fall below the 21-day line SMA and revisit the $20,000 support.
Bitcoin indicator reading
Bitcoin is at level 50 of the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. The price bars of the cryptocurrency are above the 21-day line SMA, but below the 50-day line SMA. This indicates that the cryptocurrency will move in a fluctuation range. Bitcoin is above the 40% range of the daily stochastic. The market is in a bullish momentum, even if the momentum is unstable.
Technical indicators:
Major Resistance Levels – $30,000 and $35,000
Major Support Levels – $20,000 and $15,000
What is the next direction for BTC?
Bitcoin has rallied as it has risen above the 21-day line SMA and resumed its upward movement. The cryptocurrency will fluctuate between the moving average lines. The BTC price will move when the moving average lines are broken.
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.
Source: https://coinidol.com/bitcoin-20750-support/