Bitcoin Struggles to Sustain Above $44,000 as It Reaches Overbought Region

Bitcoin Struggles to Sustain Above $44,000 as It Reaches Overbought Region

September 23, 2021

The bitcoin (BTC) price is encountering resistance at the $44,000 level today. Buyers are pushing the cryptocurrency to previous highs after bitcoin fell to a low of $40,255.

The upside is being held back by minor resistance at $44,000. If buyers overcome the minor resistance at $44,000, a rally to $47,000 is likely. However, the upside move is doubtful as the price reaches the overbought region. Sellers will show up in the overbought region and push prices lower.

The overbought condition may not last if the current trend is strong. On the downside, the downtrend will continue if Bitcoin declines and the price falls below the $40,000 support. If the bearish momentum continues, Bitcoin could fall to the low of $36,000 and later to $30,500. On the other hand, if buyers continue to defend support at $40,000, BTC/USD is likely to trade in a range between $40,000 and 44,000. Bitcoin is trading at $44,124.20 at the time of writing.

Bitcoin indicator reading

BTC price is rising and breaking through the 21-day line SMA and the 50-day line SMA, which puts the cryptocurrency on the upside. Bitcoin is still at level 44 of the Relative Strength Index of period 14. It is in the downtrend zone and below the midline 50. The price of BTC is above the 80% range of the daily stochastic. This means that BTC has reached the overbought zone.

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?

Bitcoin has been gaining in the last 24 hours. The uptrend has reached the overbought zone. This means that the BTC price will come under selling pressure again. If the bears break below the $40,000 support, the Fibonacci tool analysis will hold true. That is, the market will fall to the 2.0 level of the Fibonacci extension or to $33,569.

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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