Bitcoin (BTC) Drops to $9,100, a Rebound Is Likely

Bitcoin (BTC) Drops to $9,100, a Rebound Is Likely

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

BTC/USD Long-term Trend: Ranging
Originally, the market was range-bound between $9,200 and $9,600. BTC has been on a downward move since February 2. The bears have broken the lower price range of $9,200 and continued the downward move. Before this time, the bulls and the bears were at par in the range-bound movement.

On the downside, if the bears break the lower price range and the downtrend is sustained, Bitcoin will fall to the low of $8,800. On the upside, if the price bounces at the current low, the price will rally above $9,600.

BTC/USD

Daily Chart Indicators Reading:
The Relative Strength Index period 14 is level 60. It indicates that Bitcoin is in the bullish trend zone.BTC is still in the bullish trend zone despite the downward move. The price is falling and approaching the downtrend line. If the downtrend line is breached, the selling pressure will resume.

BTC/USD Medium-term Trend: Bullish
On the 4-hour chart, BTC is in an uptrend. The resistance at $9,500 has repelled the bulls as the coin continues its downward move. The price has reached a low of $9,100 and it is approaching the support at $9,000. If the downward movement continues and reaches the low of $9,000 or the trend line, Bitcoin will test the trend line and may probably bounce.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The stochastic indicator has fallen to the low below 25% range. It means that Bitcoin is falling and approaching the oversold region. Assuming Bitcoin has fallen into the oversold region, sellers will be in short supply or not available in the oversold region to push Bitcoin downward.

General Outlook for Bitcoin (BTC)
Bitcoin has fallen below the lower price range. It is not clear whether the downward move will continue. It is possible Bitcoin will rebound if it finds support at $9,000 or $9,100. The rebound will take the price above $9.600 and the momentum will extend to the $10,300 price level.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $9,184.80
Stop: $9,000
Target: $10,300

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.