Bitcoin Sustains Recent Rallies as Bulls Struggle to Sustain above $40,000 High
Following a successful rally to $40,000, Bitcoin's (BTC) price has been consolidating below the recent high.
On July 26, BTC price retested the psychological price level, but pulled back to the $38,000 support. Buyers have succeeded in pushing Bitcoin above the $40,000 high, but could not sustain the bullish momentum above it.
For the past four days, Bitcoin has been in a downward correction between $38,000 and $40,000. Analysts believe that consolidation near a resistance level increases chances of a breakout. On the upside, if price breaks the $40,000 level and the bullish momentum is sustained, BTC/USD will reach the high of $44,000. Nevertheless, the crypto will continue its downward correction if the bulls fail to breach the psychological price level convincingly.
Bitcoin indicator reading
Bitcoin price has reached level 70 of the Relative Strength Index, period 14. It indicates that Bitcoin has reached the overbought region of the market. Further upward move is doubtful. The daily stochastic has also confirmed that Bitcoin is in the overbought region of the market. Sellers will emerge to push prices down.
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?
BTC/USD is fluctuating below and above the $40,000 psychological price level. There is every indication that it will rally above $40,000 high, but will face further rejection on the upside. Meanwhile, on July 26 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Bitcoin will reverse to level 1.272 Fibonacci extension or $43,526.40 level where it originated.
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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