Bitcoin (BTC) Fails to Sustain Above $7,200, May Decline Towards $6, 600

Bitcoin (BTC) Fails to Sustain Above $7,200, May Decline Towards $6, 600

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

BTC/USD Long-term Trend: Bullish
Since April 7, Bitcoin has been fluctuating between $7,400 and $6,600. Yesterday, the market reached a high of $6, 985 and was repelled. Immediately, BTC dropped to a low of $6,500. At the moment, the bulls have taken price to $7,200 but could not sustain the upward move. This has been the scenario in the last two weeks. The market is falling and has reached a low of $7,059 at the time of writing. On the downside, BTC is likely to revisit the low of $6,600.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
The crypto is currently on a downward move after retesting the high of $7,200. The Relative Strength Index has also fallen to level 52 indicating that the market is in the uptrend zone above the centerline 50.

BTC/USD Medium-term Trend: Bullish
On the 4– hour chart, BTC was earlier in an upward move. The upward move has been interrupted at the $7,000 overhead resistance. The bears broke the trend line terminating the upward move. Presently, the bulls are back above the $7,000 resistance.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
Bitcoin is above 80% region of the daily stochastic. This implies that the market has reached the overbought region. Sellers are likely to emerge to push prices downward. The 21-day SMA and 50-day SMA are sloping upward indicating the upward move.

General Outlook for Bitcoin (BTC)
A downward move of Bitcoin is expected after reaching the high of $7,200. The bottom line is that once the bulls fail to sustain price above $7,000 resistance, the bears will prevail. Similarly, once the $6,600 support holds, the bulls will prevail.

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.