Bitcoin (BTC) Consolidates, Attempts to Resume Uptrend

Bitcoin (BTC) Consolidates, Attempts to Resume Uptrend

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

BTC/USD Long-term Trend: Bullish

For the past three days, the bulls have been compelled to a stand still below the $9,000 resistance. Bitcoin is in a sideways move below the resistance for a few days since the upward move has been put on hold. Bitcoin has taken a breather as the price continues its consolidation. After the consolidation, price will follow the direction of the market.

Assuming the bulls breaks the resistance above $8,800; the next resistance will be $9,500. Likewise, if the bears push the price downward, the market may drop to the low of $8,200 or $8,000. Meanwhile, the coin is still consolidating below $9000.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
The MACD line and the signal line are well above the zero line indicating a buy signal. The moving averages are in a bullish crossover indicating the upward move. The price seems to be fluctuating as the bulls fail to break the resistance level.

BTC/USD Medium-term bias: Bullish
On the 4 hour chart, the price is in a sideways trend. The bulls have made two unsuccessful attempts at the $8,800 and were resisted. Each time the price will drop down and move up again. The bulls are making another bullish move to retest the $8,800 resistance.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 60 indicates that the market is above the centerline 50. It means that Bitcoin will rise. The 21-day SMA and the 50-day SMA are sloping upward indicating the upward move.

General Outlook for Bitcoin (BTC)
Bitcoin is now in a sideways move below the $8,800 resistance. The bulls upward have been suspended for the past three days due to the inability of the bulls to break the $8,800 resistance. As the price continues to consolidate, there is the likelihood of a breakdown or breakout.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,600
Stop: $8,000
Target: $10,000

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.