The price of Bitcoin (BTC) is in a downward correction as the largest cryptocurrency has fallen above the $29,346 support level.
On May 31, buyers pushed the cryptocurrency to a high of $32,407, but failed to sustain the bullish momentum above the recent high. Since May 15, the bulls have failed to break above the overriding resistance of $32,000.
Bitcoin could rally to the psychological level of $40,000 if the current resistance is broken. Today, the BTC price is trading above the $29,346 support. Bitcoin is also above the 21-day line SMA and the 50-day line SMA. If the bears break the current support, the market will fall to the low of $26,591. If the current support holds, the BTC price will fluctuate between the moving average lines.
Bitcoin indicator reading
Bitcoin is above the 21-day line SMA, but below the 50-day line SMA. This indicates that the cryptocurrency will continue to fluctuate between the moving averages for a few more days. In the meantime, Bitcoin is below the 40% area of the daily stochastic. The market is in a bearish momentum, but it has eased.
Technical indicators:
Major Resistance Levels – $50,000 and $55,000
Major Support Levels – $40,000 and $35,000
What is the next direction for BTC?
Bitcoin is in a downtrend as it fails to break above the overriding resistance level of $32,000. The cryptocurrency is fluctuating above the $29,000 support. Bitcoin will continue to fall if the current support is broken. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that Bitcoin will continue to fall to 1,272 Fibonacci extensions or $24,831.79. The analysis of the Fibonacci tool will be confirmed if the previous low is breached.
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-faces-resistance-32000/