Bitcoin (BTC) Fluctuates Above $7,000, Upward Move Is Expected

Bitcoin (BTC) Fluctuates Above $7,000, Upward Move Is Expected

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 6, BTC reached a high of $7,364 and resumed consolidation above $7,300. The market has been fluctuating above that level. The bulls are struggling to sustain the upward move while the bears are providing stiff resistance.

It is anticipated that the bulls are likely to break the current resistance. Bitcoin will rally above $8,000 if the bulls are successful. Conversely, BTC stands the chance of sliding back below $7,000 if the bulls fail to sustain the upward move. However, in the previous price action, the market went up in early January after a period of consolidation.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin is above 80 % range of the daily stochastic. The market is now in the overbought region where sellers are expected to emerge to push prices downward. As sellers emerge, BTC is now falling. Nonetheless, the extent of the downward move is not clear. The downtrend may resume if price falls below $7,000.

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. At the moment, BTC is falling because the market has reached the overbought region. However, the current upward move will be terminated if the bears break below the trend line.

BTC/USD – 4 Hour Chart

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 60 of the daily Relative Strength Index. The coin is in the uptrend zone and above the centerline 50.

General Outlook for Bitcoin (BTC)
The bulls have continued to sustain Bitcoin above $7,000 for the past four days. Bitcoin will continue to be stronger if the bulls sustain hold above $7,000 support. It is anticipated that BTC will rally above $8,000 if the current resistance is breached. However, if the price turns down from the current resistance and breaks below $7,000 support, BTC will drop to $6,800.

Instrument: BTC/USD
Order: Buy
Entry price: $7,328
Stop: $7.280
Target: $7,528

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 a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.