Bitcoin Is in a Bearish Run as the Bulls Try to Stop the Decline to the Low of $17,605

Bitcoin Is in a Bearish Run as the Bulls Try to Stop the Decline to the Low of $17,605

September 19, 2022

Bitcoin price (BTC) is in a downtrend and continues its decline.

Bitcoin price long term forecast: bearish

On September 18, Bitcoin turned down from the 21-day line SMA, signalling the resumption of selling pressure. On September 17, buyers failed to push Bitcoin above the 21-day line SMA, leading to the current downtrend. On the downside, Bitcoin could regain the previous lows of $18,675 and $18,638. However, if the bears break below these price levels, Bitcoin will be forced to retarget the critical support level of $17,605. However, if the bulls fail to defend the current support levels, it will lead to another round of downtrends. In other words, if the bearish scenario is confirmed, there will be panic buying and selling of the BTC price.

Bitcoin indicator display

 Bitcoin is at level 36 of the Relative Strength Index for the period 14. The BTC price is approaching the oversold area at level 30. The BTC price is below the 21-day line SMA and the 50-day line SMA, which are responsible for the current decline. It is also below the 20% area of the daily stochastic. This confirms that the cryptocurrency has reached the oversold area. 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/USD? 

Bitcoin has resumed selling pressure as it moves down from the moving average lines. On the weekly chart, a candlestick has tested the 61.8% Fibonacci retracement level on March 28. The retracement suggests that BTC will fall but reverses at the 1.272 Fibonacci extension level or $11,836.95.

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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