Bitcoin Struggles to Break $34,400 High as Bears Threaten to Short
The bitcoin (BTC) price edged higher after surging to a high of $34,600 and then retreating. Buyers were unable to sustain the bullish run above the $34,400 high. Today, the bullish momentum has dried up at the $34,400 resistance as the market resumes selling pressure.
BTC/USD dropped to the low above $32,200 earlier as bulls bought the dips. The bears failed to extend the downtrend to $31,000. Lately, the bulls have been buying the dips while the bears have been selling the rallies.
This indicates the resumption of the range-bound moves. However, once the BTC price breaks through the $34,400 or $35,000 resistance level, a rally to $41,272 and then to $42,500 is expected. Unfortunately, the bears have provided strong resistance at these levels. This is causing the BTC price to fall. It is the expectation to push Bitcoin to the $31,000 support. Meanwhile, Bitcoin is trading at $34,239 at the time of writing.
Bitcoin indicator reading
Bitcoin is at level 48 on the Relative Strength Index for period 14. It indicates that the RSI has traded near the midpoint of the centerline, suggesting that there is a balance between supply and demand. Bitcoin is above the 40% area of the daily stochastic. It indicates that the cryptocurrency is in a bullish momentum.
Technical indicators:
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 is range-bound between $31,000 and $34,400. BTC price is struggling to break through resistance at $34,400. If buyers are successful above resistance, Bitcoin will rally to the high at $41,000. However, the range-bound move will continue if the bullish momentum ends at the $34,400 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 funds.
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