Bitcoin (BTC) Breaches another Resistance, a New Uptrend Likely

Bitcoin (BTC) Breaches another Resistance, a New Uptrend Likely

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 have succeeded in breaking the first resistance at $8,200. It is likely to break the second resistance at $8,400. During the first bullish impulse, the bulls were resisted at $8,400. This caused Bitcoin to commence a sideways move for a week. Buyers are having the upper hand as they push through the resistance levels.

Now the $8,200 resistance has been broken. The bulls are capable of breaking the $8,400 if the momentum is applied. On the upside, if the $8,400 resistance is broken price will rally and reach the highs of $ $9,500 and $10,000. On the downside, if the bulls fail to break the $8,400 resistance, the coin will commence another sideways move.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
The market is above the overbought region of the daily stochastic. That is above 80% range indicating that Bitcoin is in bullish momentum. The 21-day SMA and the 50-day SMA are trending northward indicating that price is rising.

BTC/USD Medium-term bias: Bullish
On the 4 hour chart, the price is making a series of higher highs and higher lows. On the chart, the bulls tested the resistance at $8,200 on four occasions. On the fifth time, the bulls break the resistance and are presently battling with the second resistance at $8,400.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index (RSI) period 14 level 71 indicates that price has reached the overbought region of the market. This indicates that sellers may come in at the overbought region and resume selling. Bitcoin may retrace and test the support line to resume upward. However, a break below the support line will result in downtrend resumption.

General Outlook for Bitcoin (BTC)
Bitcoin is making progress as it breaks the resistance at $8,200. The bulls have succeeded in defending the $8,000 support as the sideways move lasted for a week. Buyers overwhelmed the bears at $8,200 as the bullish momentum was sustained. The bulls have one more hurdle at $8,400 before facing the $10,000 price mark.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,487
Stop: $8,000
Target: $10,000

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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.