Bitcoin Faces an Uphill Task of Recovery as It Drops to $19,842
Today, the price of Bitcoin (BTC) has fallen to a low of $19,811 as sellers break through support at $20,790. Earlier, the largest cryptocurrency faced heavy selling pressure at the $24,000 and $22,000 resistance zones.
On August 19, the BTC price fell from the upper resistance zone of $24,000 to $20,790. Buyers stopped the decline when the cryptocurrency resumed a sideways movement for a week. However, after an upward correction to the $22,000 resistance zone, Bitcoin came under selling pressure again.
On August 28, BTC/USD dropped to the low of $19,540 as bulls bought the dips. The current decline has pushed Bitcoin below the psychological price level of $20,000. Today, the BTC price is correcting upwards to reach the high of $19,841. On the downside, the largest cryptocurrency could regain the previous lows of $18,638 or $17,605 if it comes under selling pressure after the recent high. Nevertheless, a further downward movement of the price is doubtful as the market reaches the oversold zone.
Bitcoin indicator reading
Bitcoin is at level 33 of the Relative Strength Index for the period 14. The cryptocurrency is in a downtrend as it approaches the oversold area. Nevertheless, the BTC price is below the 20% area of the daily stochastic. The cryptocurrency is trading in the oversold area, which indicates that the selling pressure is exhausted. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.
Technical indicators:
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 in an upward correction after falling to a low of $19,540. The cryptocurrency will regain its bullish momentum if it breaks above the $22,000 resistance zone. However, selling pressure will pick up again if Bitcoin experiences another rejection.
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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