Bitcoin (BTC) Holds Uptrend amidst Sleepy Market

Bitcoin (BTC) Holds Uptrend amidst Sleepy Market

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

BTC/USD Long-term Trend: Bullish
Bitcoin survived the downward move as price rebounded at the low of $9,600. After the rebound, BTC rose to a high of $10,200 and was repelled. BTC/USD pair is now fluctuating below the $10,250 resistance. The price pulled back after testing the resistance at $10,250. We shall wait for a second retest at the resistance to see whether there will be any penetration.

Bitcoin will be compelled to a sideways move if the current resistance persists. The pair will be in the range-bound move between $9,600 and $10,200. On the downside, if the selling pressure resumes, the bears may take advantage to break the support at $9,600. Broken support of $9,600 will depreciate to the low of $9,200.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
The Relative Strength Index has risen to level 60 indicating that Bitcoin is in the uptrend zone. The coin also has gone up to a high of $10,126. Yesterday, the price rebounded at the support line of the ascending channel which is a positive move. When the price is above the EMAs, the uptrend is on course.

BTC/USD Medium-term Trend: Bullish
On the 4- hour chart, Bitcoin fell to the low of $9,500 and rebounded. The upward move was terminated at a high of $10,200 . However, if the price continues to fluctuate between $9,500 and $10,200, then the coin is said to be trading in a range. Nonetheless, if the price consolidates within this range, a breakout or breakdown will ensue.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The bulls were resisted at the current resistance but the price fell to the support of the 50-day SMA. It means that a retest is possible at the resistance. Bitcoin reaches above 80% range of daily stochastic but the stochastic bands are making a U-turn pointing downward. It indicates a bearish momentum.

General Outlook for Bitcoin (BTC)

Bitcoin is still in an uptrend as the price is above the EMAs. The bulls are still in control of price as it is currently trading above $10,000. The bulls are making a second attempt to retest the resistance at $10,250 or $10,400. It is anticipated that a break above $10,400 will propel BTC to rally above $11,500.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $10,120
Stop: $9800
Target: $11,000

 

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.