Bitcoin Hovers above $20,500 as It Challenges the $21,000 High

Bitcoin (BTC) continues to move in a sideways trend below the $21,000 resistance zone. On October 26 and 29, buyers failed to keep the price above the $21,000 high.

Each time the resistance zone was reached, Bitcoin price fell above the psychological level of $20,000. Today BTC drops to the low of $20,504. 

There is a tendency for Bitcoin to regain the support of $20,000. On October 28, sellers pushed the cryptocurrency to the psychological price level, but bulls bought the dips. Meanwhile, if the $20,000 support holds, Bitcoin will fluctuate between $20,000 and $21,000 price levels. On the other hand, if the bears break the $20,000 support, Bitcoin would fall and enter the former range zone between $18,800 and $19,900. 

Bitcoin indicator reading

Bitcoin is declining due to the rejection of the high at $21,000. The recent decline has caused Bitcoin to reach the 58 level of the Relative Strength Index for the 14 period. The moving average lines are below the price bars, indicating that the value of the cryptocurrency will increase. The daily stochastics are below the 20% level of the cryptocurrency, indicating an oversold condition of the asset.

Technical indicators:  

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

Major Support Levels – $20,000 and $15,000

What is the next direction for BTC?

The cryptocurrency is trading below the $21,000 resistance level. The bottom line is that Bitcoin will fall if buyers fail to break the current resistance level. Nonetheless, the $21,000 high will be retested as long as the price bars above the moving average lines. The downtrend will continue once the $20,000 support 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 in funds.

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