Bitcoin Rebounds Sharply but Unable to Sustain above $40,000 High
Bitcoin's (BTC) price retraces after a successful rally to a $37,500 high. Previously, the crypto had earlier fallen to $31,075 support after surviving the recent bearish run.
Bitcoin rebounded above the $32,000 support and rallied to a $37,500 high. However, if the BTC price had rallied above the $39,000 resistance, the bearish market structure would have changed. The bullish momentum would have continued on the upside.
A breakout above $40,000 high would catapult the crypto to $46,000 high. However, this bullish scenario is not likely to hold as Bitcoin retraces on the downside. The retracement may extend to the low above $35,842.80. The downward correction is likely to continue for a few days. Buyers may want to sustain and defend the critical support at $34,000. The previous breakdown below $34,000 led to the current support. Meanwhile, Bitcoin is trading at $36,881 at the time of writing.
Bitcoin indicator reading
BTC price is retracing on the downside, if the price breaks below the support line of the descending channel, the downtrend will resume. Bitcoin is at level 43 of the Relative Strength Index period 14. It indicates that the crypto is in the bearish trend zone. The crypto’s price is below the moving averages which suggest a possible fall in prices.
Major Resistance Levels – $65,000 and $70,000
Major Support Levels – $40,000 and $35,000
What is the next direction for BTC/USD?
Bitcoin price is falling after rejection from the recent high. Meanwhile, on June 10 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This retracement indicates that Bitcoin will fall to level 2.0 Fibonacci extensions or level $35,842.80.
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 funds.
Source: Read Full Article