Bitcoin Hovers above $19,000 as Bulls Resist Further Decline
The price of Bitcoin (BTC) is in a downtrend, falling slightly to the $19,000 support level. The decline has been steady since the $22,000 high on June 26.
After the price collapse on June 30, the upward movement was limited by the 21-day line SMA. The largest cryptocurrency is forced to trade in a narrow range between $18,800 and $19,900. Since July 1, the trading range has not been breached yet.
At the time of writing, BTC/USD is trading at $19,110. On the downside, the BTC price will fall below the $18,800 support on a retracement of the previous low at $17,605. The upside is doubtful due to the restriction by the 21-day line SMA. However, if the bitcoin price rises above the $19,000 support, the upward momentum is capable of reaching the high at $23,010. In the meantime, the price action is characterized by small indecisive doji candles. The doji candles indicate that buyers and sellers are indecisive about their next move.
Bitcoin indicator reading
Bitcoin is at level 28 on the Relative Strength Index for period 14. The largest cryptocurrency continues to trade in the oversold region of the market as selling pressure eases. Buyers are attracted to the oversold region. The cryptocurrency price bars are still below the moving averages, indicating a possible decline. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend. The cryptocurrency price is below the 40% area of the daily stochastic. Bitcoin is in a bearish momentum.
Major Resistance Levels – $30,000 and $35,000
Major Support Levels – $20,000 and $15,000
What is the next direction for BTC?
Bitcoin is trading marginally above $19,000 support and the price movement was insignificant. The Fibonacci tool will hold if the current support is broken. Meanwhile, on May 13 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that BTC will fall to the Fibonacci extension of 1.618 or $16,647.
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.
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