Bitcoin (BTC) price continues to trade above the moving averages. This is an indication of a possible move to the previous highs.
Today, the BTC price has retreated to a low of $43,678. Since February 8, the largest cryptocurrency has been trading in a narrow range between $41,800 and $45,000.
The bulls have failed to break the overriding resistance of $45,000 three times. Last week, the cryptocurrency was forced to move sideways in a narrow range. Bitcoin will recover to the psychological price level of $50,000 if the bulls overcome the resistance of $45,000. Later, the bullish momentum will extend to the high of $52,000. However, if the bears manage to fall below the support at $41,800, the downtrend will resume. Bitcoin will fall to a low at $39,000. In the meantime, Bitcoin is fluctuating below the overriding resistance.
Bitcoin indicator reading
BTC price is at level 57 of the Relative Strength Index for the period 14. BTC price has stabilized in the uptrend as bulls retested the overhead resistance. Bitcoin will continue to rise as long as the price bars remain above the moving averages. The cryptocurrency is below the 50% area of the daily stochastic. The bearish momentum has subsided while the cryptocurrency is trending upwards again.
Technical indicators:
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $60,000 and $55,000
What is the next direction for BTC?
Bitcoin (BTC) price continues to move in a tight range as the price bars remain above the moving averages. Last week, the price bars consolidated below the overhead resistance. It is said that consolidation below a resistance level after a certain period of time increases the probability of a breakout. The largest cryptocurrency could experience a breakout or breakdown.
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-43000-support/