Bitcoin (BTC) Consolidates but Begins Gradual Decline

Bitcoin (BTC) Consolidates but Begins Gradual Decline

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

BTC/USD Long-term Trend: Bullish
Interestingly, Bitcoin now fluctuates below the $9,000 on a daily bases as the bulls fail to break the $8,800 resistance level. On Daily bases, small body candlesticks form below the resistance level. These candlesticks describe the indecision between buyers and sellers at the current price level. Today, the coin is falling after testing the overhead resistance. The upward move is likely to continue as the price is above the EMAs. Once the price bars find support, the uptrend will resume.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
Bitcoin is falling because the coin is trading in the overbought region of the daily stochastic. Sellers will come in when the BTC is overbought to push price downward . BTC will fall if the coin is retracing and price breaks below the downtrend line. On the other hand, if the support holds, the upward move will resume.

BTC/USD Medium-term bias: Bullish
On the 4 hour chart, the bulls break above the $9,000 but were repelled. The bulls could not sustain the price above the resistance. The price drops to a low of $8,600 after the recent resistance. However, further selling will make the coin reach a low of $7,800.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The MACD line and the signal line are above zero line which gives a buy signal. The 21-day SMA and 50-day SMA are trending upward indicating the upward move. If the market retraces and breaks below the support trend line, the downtrend will resume.

General Outlook for Bitcoin (BTC)
Bitcoin is trading at $8,600 at the time of writing. The market upward move has been hampered because of the resistance at $8,800. The bears are gradually depreciating Bitcoin to its previous lows. The bulls risked losing possession of price if the $8,800 resistance remains intact. The coin can turn down from the overhead resistance and break below the $7,800.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,600
Stop: $8,000
Target: $9,500

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.