Bitcoin Attempts to Hold Above $20,000 but Trades in a Tight Range

The Bitcoin (BTC) price has finally fallen to the psychological $20,000 mark. On June 14, the largest cryptocurrency fell to a low of $20,816 and consolidated back above the current support.

After the initial dip on June 13, BTC/USD continued to consolidate above the psychological price level of $20,000. In the last 48 hours, the cryptocurrency fluctuated between $20,050 and $23,000 price levels. A further decline is unlikely as the market has reached the oversold zone. The question is: has bitcoin reached the lower price limit?

Some analysts like Mike Novogratz believe that the bottom is near. According to him, “Ethereum should hold around $1,000 and is at $1,200 right now. Bitcoin is at $20,000, $21,000, and now $23,000, so you are much closer to the bottom in cryptocurrencies than stocks, which I think are going to fall another 15% to 20%.” Meanwhile, the bears have retested current support twice, while the bulls have bought the dips. The downtrend will continue if the bears fall below the $20,000 support. The cryptocurrency will decline and retest the $17,500 and $16,000 support levels. At press time, the cryptocurrency is trading at $21,715. 

Bitcoin indicator reading

Bitcoin is at level 25 of the Relative Strength Index for period 14. The cryptocurrency is deep in the oversold region of the market. The BTC price is also below the 20% area of the daily stochastic. The current downtrend is expected to weaken as buyers emerge in the oversold region of the market. The 21-day line SMA and the 50-day line SMA are sloping downwards, indicating a downtrend.

Technical indicators:  

Major Resistance Levels – $30,000 and $35,000

Major Support Levels – $25,000 and $20,000

What is the next direction for BTC?

Bitcoin is still in a downtrend as the bears continue to try to retest the key support at $20,000. According to one analyst, panic buying and selling will occur if Bitcoin continues to fall below the $20,000 price level. Meanwhile, Bitcoin has reached the oversold region of the market. The oversold region may attract buyers, which will drive prices higher.

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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