Bitcoin Struggles below $20,500 as Sellers Resume Selling Pressure

Bitcoin (BTC) is in a downtrend today as buyers push the price above the psychological $20,000 mark. Over the past five days, the BTC has settled in a range above the $20,000 support.

The cryptocurrency fluctuates between $19,540 and $20,500 price levels. The upside moves have been staved off twice, hence the current price fluctuations. On the upside, if buyers push bitcoin above the 20-day line SMA, bitcoin will continue to rise to the high of $21,874. A break above the moving average lines will signal the resumption of upward momentum. Bitcoin will rally above the upper resistance of $24,000. However, if Bitcoin turns down from the moving average lines, the largest cryptocurrency will fall down. Bitcoin will fall to the previous low at $18,910 and $18,626 if the current support at $19,540 is broken.

Bitcoin indicator reading

Bitcoin is at level 37 of the Relative Strength Index for period 14. BTC price is in the downtrend zone while making an upward correction. Nevertheless, Bitcoin is below the 20% area of the daily stochastic. Buyers are likely attracted to the oversold region of the market. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.

Technical indicator   

Key Resistance Zones: $30,000, $35,000, $40,000

Key Support Zones: $25,000, $20,000, $15,000 

What is the next direction for BTC?

Bitcoin is consolidating above $19,540 support as selling pressure eases. Meanwhile, the August 20 downtrend has a candlestick body testing the 78.6 Fibonacci retracement level. The retracement suggests that BTC will fall but reverse at the 1.272 Fibonacci extension level or $19,723. The price action shows that Bitcoin has reversed, but the upside is facing resistance at the recent high.

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 own research before investing in funds.

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