The price of Bitcoin (BTC) has stalled after falling above the $53,000 mark. The largest cryptocurrency fell to a low of $52,756 before recovering.
Long-term forecast for the BTC price: bearish
Selling pressure has reached bearish exhaustion. Bitcoin has returned to the historical price level of July 5. On July 5, the cryptocurrency rallied after hitting a low of $53,219, as reported by Coinidol.com. In addition, the Bitcoin price rose to the psychological milestone of $70,000. In the last 24 hours, the price of the cryptocurrency has remained above its historical level.
Bitcoin’s uptrend will continue if the support level of $52,000 holds. Buyers will try to keep prices above the moving average lines. In the meantime, the bears are determined to break through the historical price level. If the current support level is breached, Bitcoin will fall and return to its low of $49,000. Today, Bitcoin is worth $54,013.
BTC indicator reading
The moving average lines are slipping downwards as the 21-day SMA falls below the 50-day SMA. This indicates a negative signal that is weakening as it approaches the $53,000 support. The 21-day SMA is the resistance line of the price bars. A break above the moving average lines will indicate the return of the uptrend.
Technical indicators:
Resistance Levels – $70,000 and $80,000
Support Levels – $50,000 and $40,000
What is the next direction for BTC/USD?
Bitcoin falls and returns to the historical price level of July 5. On the price drop on August 28, BTC price corrected upwards and tested the 61.8% Fibonacci retracement line with a candlestick body. A retracement in a downtrend means that cryptocurrency values will continue to fall. Bitcoin price has fallen to the 1,618 Fibonacci extension ($53,585). However, it is unclear whether the current support will hold.
Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.