Bitcoin (BTC) Bounces as Uptrend Gains Ground

7 February 2020 | Updated: 7 February 2020

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

BTC/USD Long-term Trend: Bullish
In the last 24 hours, the bulls have held on the price above $9,700. The positive upward move was as a result of the rebound on February 4. Previously the coin was range-bound between $9,200 and $9,600. Buyers bought at the low of $9,100 and have pushed the price to the top of the range.

The bears could not continue with the downward movement at a low of $9,100. Presently, the price at the top of the range is $9,777. Nevertheless, if the price breaks above this current range, the coin can rally above $10,300.

BTC/USD -Daily Chart

Daily Chart Indicators Reading:
Bitcoin is currently trading above $9,700 and it is above 80% range of the daily stochastic. This explains that Bitcoin is in the overbought region of the market. It also means that BTC is in a strong bullish momentum. Meanwhile, the price action has not shown any reversal candlesticks of Bitcoin. It also means that the upward move may likely continue.

BTC/USD Medium-term Trend: Bullish
On the 4-hour chart, BTC is in a smooth uptrend. In its first bullish move, it was resisted at $8,400. The price pulled back and continued the upward move. In its second bullish move, it was resisted at $9,200 and the coin fell to the support of the trend line. At this support, the coin rebounded and the momentum extended the high of $9,500. The upward move is continuing as the price reaches a high of $9,700.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
On the Relative Strength Index period, 14 levels 70 indicate that the coin is nearing the overbought region. In the overbought region, there will be sellers that will push the coin downward. However, buyers may not be on hand to push the coin upward.

General Outlook for Bitcoin (BTC)
Bitcoin is now trading above $9,700 at the time of writing. As the market reaches the overbought region, the coin is likely to fall to the previous support. Alternatively, the market will continue to move in a sideways trend.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $9,777
Stop: $9,600
Target: $10,300

Note: 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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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.