Bitcoin Slumps as Sellers Target the $17,605 Low

Bitcoin (BTC) is in a downtrend as sellers resume selling pressure. Since August 28, the largest cryptocurrency has been in a range between $19,540 and $20,540 price levels.

On September 6, sellers had the upper hand when they broke the $19,540 support. Bitcoin fell to a low of $18,675 as the bulls bought the dips. Today, the BTC price has risen to a high of $19,463 as we write this article. If the BTC price rallies above the current support, Bitcoin could rally above the high of $19,540. In other words, Bitcoin will regain its upward momentum if the price breaks above the 21-day line SMA. 

Conversely, the bullish scenario will be invalidated if Bitcoin falls back after losing the previous low. On the downside, Bitcoin will continue to fall to the low of $17,605. In the meantime, Bitcoin is facing another rejection at the time of writing. 

Bitcoin indicator reading

The cryptocurrency is at level 35 of the Relative Strength Index for the period of 14. It is in a downtrend as it is trading in the oversold region. The BTC price has a bearish crossover as the 21-day line SMA falls below the 50-day line SMA, indicating a sell order. Bitcoin price is below the 20% area of the daily stochastic. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.

Technical indicator  

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?

The largest cryptocurrency has resumed selling pressure, falling to $18,675. The BTC price will continue to fall if the current support is broken. On the weekly chart, a retraced candle tested the 78.6% Fibonacci retracement level on March 28. The retracement suggests that the BTC price will fall but reverse at the level of the 1.272 Fibonacci extension or $11,836.

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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