The price of Bitcoin (BTC) has dropped significantly as the largest cryptocurrency lingers above the psychological price level of $50,000.

Bitcoin price long-term prediction: bearish

The price of the cryptocurrency has been fluctuating below the $70,000 resistance zone after being rejected at the high of $68,479 on July 21.

On July 29, the upward momentum hit resistance at $70,162, leading to the current downtrend, as reported previously by Coinidol.com. The bulls were overwhelmed as the bears broke below the moving average lines. The downtrend also broke through support at $60,000 and reached a low of $52,209. The price indicator had previously predicted a likely decline in the Bitcoin price.

On July 25, the BTC price corrected upwards and tested the 38.2% Fibonacci retracement line with a retracing candlestick body. The retracement indicates a current decline in the coin. It suggests that Bitcoin will fall to the 2.618 Fibonacci extension or $52,748.

The market has reached an oversold level and a further decline is unlikely. Bitcoin will rise if the $50,000 support remains.

Technical indicators:

Key Resistance Levels – $70,000 and $80,000

Key Levels – $50,000 and $40,000

Bitcoin indicator reading

The moving average lines tilt south when the price bars fall below them. On the 4-hour chart, the moving average lines have formed a bearish crossover, which is a negative signal for August 1. Bitcoin has entered oversold territory as it approaches the $50,000 support.

What is the next direction for BTC/USD?

Bitcoin has crashed and reached the $50,000 psychological level. It has dropped to a 4-hour low of $49,647, but the bulls have taken advantage of the dips. The largest cryptocurrency is correcting upwards above the $50,000 mark. If the current support holds, Bitcoin will have to move in a range above $50,000 and below the moving average lines.

Disclaimer. This analysis and forecast are the personal opinions of the author. They 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.