Bitcoin (BTC) Continues Its Decline but Fail to Reach the Support at $8,400

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

BTC/USD Long-term Trend: Bearish
Bitcoin is still on a downward move. On February 25, the bears broke the support at $9,200. After the support at $9,200, the selling pressure continues, as the bears approach the next support at $8,400. Nevertheless, the downward move has reached the oversold region as buyers emerge. There is a temporary respite as Bitcoin makes an upward move.

However, as the bulls make an upward move, it may face resistance at $9,200. Bitcoin will resume its downward move if it faces resistance at $9,200. Nevertheless, the market will remain range-bound if the bulls fail to break the resistance at $9,200.

Daily Chart Indicators Reading:
At present, Bitcoin is at level 38 of the Relative Strength Index period 14. It indicates that the coin is likely to fall because it is below the centerline 50. At the moment, the price is making an upward movement; the RSI is also making a U-turn.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, the market fell to a low of $8,600 and pulled back to resume an upward move. It is unclear how far the upward move will be as the coin will face resistance at $9,200. The price is expected to break above the lower line of the channel before pushing above the resistance.

4-hour Chart Indicators Reading
Bitcoin has fallen below a 20% range of the daily stochastic. However, the stochastic bands have made a U-turn in readiness for bullish momentum. That is, it is now in the oversold region of the market. Selling has been overdone. Buyers have already emerged to push the coin upwards.

General Outlook for Bitcoin (BTC)
Bitcoin downward move reaches the low of $8,600 and pulled back to resumes a bullish move. In retrospect, the price action makes an upward move but reversed to follow the prevailing trend in November 2019. The market ought to have reached a low of $8,400.

Instrument: BTC/USD

Order: Sell

Entry price: $9,100

Stop: $9,300

Target: $7,800

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