Bitcoin Recovers $26,000 Support, But Gets Oversold

Cryptocurrency analysts of Coinidol.com report, Bitcoin (BTC) price broke the important support level twice in the last week.

Bitcoin price long-term forecast: bearish

During the initial uptrend, the market reached a high of $26,461 before crashing to a low of $24,917. The bulls took advantage of the dips and continued the second rally. At the time of writing, the Bitcoin price is at $26,791.

On the upside, further gains in the cryptocurrency are unlikely as it approaches the overbought zone of the market. If sellers appear at the overbought level, the current upward momentum will end. The current uptrend is likely to continue if the important support level of $26,000 is maintained. This means that Bitcoin will continue to rise above the 50-day simple moving average (SMA) or the high at $28,000

Bitcoin indicator display

Bitcoin has gained positive momentum and reached the Relative Strength Index of 53 for the period 14. The cryptocurrency has the potential to rise as it enters the bullish trend zone. BTC is currently trading between the moving average lines but below the 50-day line SMA. If the price breaks above the 50-day simple moving average, the cryptocurrency will resume its positive trend. Bitcoin is currently trading above the 91 level on the daily stochastic. The market is clearly overbought. The price of the cryptocurrency could face rejection.

Technical Indicators:

Key resistance levels – $30,000 and $35,000

Key support levels – $20,000 and $15,000

What is the next direction for BTC/USD?

The largest cryptocurrency is gaining ground as buyers try to push the altcoin above the moving average lines or the $28,000 level. If the market moves into the overbought zone, the current uptrend could be at risk. However, an overbought condition might not last in a market that is rising sharply.

On September 09, 2023 cryptocurrency analytics specialists of Coinidol.com stated that the bullish momentum is fleeting as it faces resistance at the recent high. Nevertheless, the cryptocurrency price is above the 21-day line SMA, but below the 50-day line SMA. 

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.com. Readers should do their research before investing in funds.

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• Source: https://coinidol.com/bitcoin-recovers-26000-support/