Bitcoin (BTC) Battles Next Major Resistance before the Rally above $11,500

Bitcoin (BTC) Battles Next Major Resistance before the Rally above $11,500

Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000

BTC/USD Long-term Trend: Bullish
Today, the bulls broke above the target price of $10,360 and reached a high of $10460. Unfortunately, Bitcoin is retracing after being resisted at $10,400. On the downside, if price retraces to the $10,000 support and holds, the market will tend to move up again.

Alternatively, if the price breaks below the $10,000 support, Bitcoin may likely drop to the low of $9,800. Presently, the upward move is ongoing and if price finds support above $10,000, the bulls will break the resistance at $10,400 and rally above $11,000. The momentum will extend to $11,500 and other minor resistance.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
Bitcoin has been trading above 90% range of the daily stochastic since January 29. The stochastic bands are sloping up and down above 75%. In the overbought region when it slopes up to 90%, Bitcoin will rise but it will fall when it slopes down to 75% low.

The bearish momentum has not gone below 75% range in the last two weeks. The market may go up as soon as it reaches 75% low. Meanwhile, the price is still above the 50-day SMA and 21-day SMA which indicates that the coin is rising.

BTC/USD Medium-term Trend: Bullish
On the 4 hour chart, BTC rebounded above the trend line and reached a high of $10,460. The price is falling and approaching the previous support. It is expected that the coin will find support at $10,000 and $10,200. The upward movement will resume if the bulls defend the current support.

BTC/USD - 4 HourChart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 62 indicates that Bitcoin is in the uptrend zone. This indicates that Bitcoin is still in the uptrend zone. The coin is likely to rise. Meanwhile, the 21-day and the 50-day SMAs are sloping upward.

General Outlook for Bitcoin (BTC)
Bitcoin was resisted at $10,400 during its upward movement. The price is fluctuating below the current resistance. The upward move is doubtful because Bitcoin is overbought. In other words, if the upward move is to continue, how long will it be in the overbought condition? Well, all depend on the price action. Meanwhile, BTC is still trading at $10,339 at the time of writing.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $10,369
Stop: $10,100
Target: $11,000

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.