Bitcoin (BTC) Fluctuates Above $8,500 as the Selling Pressure Subsides

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

BTC/USD Long-term Trend: Bearish
Surprisingly, the downward move has reached an advanced stage as Bitcoin approaches the next support at $8,400. In its downward move, the price fell to $8,500 low and made a pulled to retest  $9,000 price level. After a successful retest, BTC resumed the downtrend as its approaches the support at $8,400. On the downside, if BTC falls to $8,400 low, then we should think of the next support at $8,200. Nonetheless, the downward move may soon reach a compromise as the indicators are showing various degrees of oversold positions.

Daily Chart Indicators Reading:
Undeniably, Bitcoin has fallen below 20% range of the stochastic. This implies that the selling pressure of Bitcoin is overdone. It also means that the market has reached the oversold region. In the oversold region, the bearish momentum is strong. In the region, buyers are generated to push Bitcoin upward. The price has broken below the 21-day SMA and 50-day SMA indicating that the downtrend has resumed.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, the market has fallen to $8,505. From the resistance of $10,000, the market dropped to $8,750. The price pulled back to retest but continues the downward move. The $8,750 is a historical price level where the market consolidated before the downward move.

4-hour Chart Indicators Reading
Bitcoin is trading at level 22 of the Relative Strength Index period 14. The market is now in the oversold region of the RSI. Sellers will be unavailable to push BTC downward. Rather, buyers will be on hand to push Bitcoin upward.

General Outlook for Bitcoin (BTC)
Bitcoin has traded and fallen to the oversold region of the market. The stochastic and the Relative Strength Index have indicated that BTC is in the oversold region. Bitcoin is currently oversold at $8,551. Buyers are expected to emerge. Bitcoin will rise from a low of $8,551 if buyers emerge.

Instrument: BTC/USD
Order: Buy
Entry price: $8,642
Stop: $8,300
Target: $9,500

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