Bitcoin Resumes Downtrend as It Faces Strong Rejection at $40k

The Bitcoin (BTC) price appears to be under renewed selling pressure as the upside correction faces rejection at the $40,000 level. On July 4, the BTC price broke down to $37,500 and resumed its upward correction.

The upward correction ended as the cryptocurrency regained support at $38,000. The bears have already broken through the $38,000 support while the bulls were buying the dips. However, the upside correction was short-lived as the market resumed its downtrend.

On the downside, sellers are likely to push the BTC price to the low of $36,000 as they were attracted by the high of $40,000. The market will fall to $36,800 if the bears break the $38,000 support. On the other hand, the BTC price will rise again if the $38,000 support holds. At the time of writing, Bitcoin is trading at $38,000.

Bitcoin indicator reading

Bitcoin has fallen to level 57 on the Relative Strength Index for period 14. This indicates that Bitcoin is still in the up zone and above the 50 mid-line. The cryptocurrency is also below the 80% area of the daily stochastic. This indicates that the cryptocurrency is in a bearish momentum and another downtrend is likely.

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?

It is likely that Bitcoin will continue its downward movement as it faces a rejection of the $40,000 high. Meanwhile, on August 4 downtrend, a retraced candlestick body tested the 61.8% Fibonacci retracement level. The retracement suggests that Bitcoin will fall to the 1.618 Fibonacci extension level or the $34,454.30 level.

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