Bitcoin (BTC) Could Correct Sharply Below $7,000, Struggles Below $7,400 Resistance

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 few days, the bulls have been able to sustain above the $7,000 support. On the other hand, the bulls have failed to break $7,400 and $7,500 resistance. BTC could have reached the highs of $7,800 and $8,000 if the bulls are successful. Rather, BTC is having some bearish signals as the market depreciates to $7,200 support. Now on the upside, if the bulls sustain the price above $7,000 support, BTC will reach the  high of $7,800 or $8,000 resistance. On the downside, if bulls fail to sustain hold, the market will fall to $6,800 low.

Daily Chart Indicators Reading:
Bitcoin is above 80 % range of the daily stochastic. Bitcoin is still in the overbought region of the market. However, the upward move is doubtful as sellers may emerge in the overbought region. The emergence of sellers is to push prices downward. Some times in exceptional cases, the overbought condition may remain without the emergence of sellers.

BTC/USD Medium-term Trend: Bullish
On the 4 – hour chart, the market is in an upward move. A trend line is drawn showing the support level of price. The price is still consolidating above $7,000. On the downside, if the bears break and close below the trend line the uptrend will be terminated.

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are sloping upward indicating the upward move. BTC has risen to level 54 of the daily Relative Strength Index. The coin is in the uptrend zone and above the centerline 50.

General Outlook for Bitcoin (BTC)
Bitcoin is still above the $7,000 support but it is currently facing some bearish signals. We are still expecting the bulls to sustain price above the current support. Failure of the bulls will lead to the fall of Bitcoin

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