Bitcoin (BTC) Bounces Breaks Major Key Levels

Bitcoin (BTC) Bounces Breaks Major Key Levels

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

BTC/USD Long-term Trend: Bullish
Bitcoin makes a gradual push to the $10,300 as the price reaches a high of $10,050. The price pulled back on the 5th, 6th and 8th of February and made an upward move. BCH made a bigger move when the coin fell to a low of $9,200 on February 4. The coin moves up and breaks major resistance levels. Bitcoin’s major targets are the $10,000 and $10,300 price levels. The moment the bulls reach the second target, the bears may put up a stiff resistance above the $10,300 price level.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
The Relative Strength Index period 14 is level 70 indicates that Bitcoin is approaching the overbought region. Most times the coin will fall, retrace or pull back because it has reached the overbought region of the market. Bitcoin upward move may continue for now but will decline as soon as the RSI is above level 70. The buyers may not be available in the overbought region. Rather we will have the presence of sellers who will push Bitcoin downward.

BTC/USD Medium-term Trend: Bullish
On the 4 hour chart, Bitcoin is in a smooth uptrend. A trend line is drawn showing the support levels of price. Each time the market test the trend line, the upward move will continue. However, if price breaks below the trend line, it means that the bullish trend has been terminated.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are sloping upward indicating the upward trend. Bitcoin is also above 80% range of the daily stochastic. It also means that price is in a strong bullish momentum. The market is also in the overbought region.

General Outlook for Bitcoin (BTC)
Bitcoin is still in an upward move approaching the $10,000 market. The bulls are likely to reach their first target and the momentum will extend the $10,300 and $11,000. The coin is approaching the overbought region. Incidentally,  the coin may likely fall and later resume the uptrend.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $10,050
Stop: $9,900
Target: $10,300

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.