Bitcoin Declines above $24,000 as Bears Threaten Further Downsides

Bitcoin (BTC) has fallen to a low of $24,291 after three weeks of trading above the $29,078 support level. According to the price indicator, Bitcoin has fallen to a targeted low of $24,352.

The cryptocurrency is likely to hold above the $24,000 support before falling further. If the bears fall below the $24,000 support, the bearish momentum will extend to the $20,000 low. Moreover, Bitcoin is deep in the oversold region of the market. Selling pressure will be exhausted above the $20,000 support. BTC/USD is trading at $24,291 as of press time.

Bitcoin indicator reading

Bitcoin is at level 27 on the Relative Strength Index for period 14. The cryptocurrency has fallen into oversold territory in the market. The BTC price is also below the 20% area of the daily stochastic. The daily stochastic has indicated the oversold condition of Bitcoin. This means that the current downtrend is likely to subside. Buyers are expected to emerge in the oversold region and push prices higher. The 21-day line SMA and the 50-day line SMA are downward sloping and indicate a downward trend.

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 has dropped significantly to the downside. The cryptocurrency has fallen and retested the Fibonacci extension. Meanwhile, on May 11 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that BTC will fall, but will reverse at the level of the 1.272 Fibonacci extension or $24,352. The price action shows that Bitcoin broke below the Fibonacci extension and reached a low of $23,950 but retraced.

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: Read Full Article