Bitcoin Slumps As Sellers Target The $17,605 Low

As selling pressure returns, Bitcoin (BTC) prices are falling. Bitcoin’s price has been stuck at $19,540 and $20,540 since August 28.

After breaking $19,540 on September 6, sellers were in control of the market. Bulls purchased the dip and Bitcoin plummeted to a low of $18,675. As at the time of writing, the Bitcoin price had reached a day high of $19,463. Bitcoin’s price could go over the $19,540 high if it breaks out of the zone of recent support. If the price of Bitcoin rises over the 21-day line SMA, it will restore its upward momentum.

In contrast, if Bitcoin declines again after breaking above the prior low, the bullish scenario will be rendered implausible. Bitcoin’s price is expected to keep falling until it reaches $17,605. Meanwhile, Bitcoin is currently experiencing another another rejection as of this writing.

Taking a Bitcoin Indicator

Bitcoin’s Relative Strength Index (RSI) for the last 14-day period is 35. Since it is trading at oversold levels, the trend is down. As the 21-day line SMA drops below the 50-day line SMA, the BTC price suffers a bearish crossover. The daily stochastic for Bitcoin is below the 20% area, indicating a bearish trend. Both the 21-day and the 50-day Simple Moving Average (SMA) lines are sliding south, pointing to a downward trend.

Indicator for Technicians

Three Critical Support Levels: $30,000, $35,000, and $40,000

Supporting Zones of Critical Importance: $25,000, $20,000, and $15,000

Where do you see BTC going from here?

Selling pressure has begun, and the largest cryptocurrency is now at $18,675. If the Bitcoin price breaks the current support, the decline will continue. A retraced candle on the weekly chart on March 28 tested the 78.6% Fibonacci retracement line. Bitcoin’s price may decline, but the retracement indicates it will likely bounce back up around $11,836 (the 1.272 Fibonacci extension).