Bitcoin (BTC) in a Deadlock, Will the Decline From $7,300 Resistance Continue?

12 April 2020 | Updated: 12 April 2020

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

BTC/USD Long-term Trend: Bullish
Following the breakdown on April 10, the bulls have continued to sustain Bitcoin above $8,000 support. Analysts agree that continuance sustenance may bring about a rebound above the current support. This will propel Bitcoin to reach the mid- $7,000 regions.

Presently, price is still fluctuating above $6,800 support. There has been partial breakdown below the $6,800 support but the bulls will pull above the support immediately. Bitcoin will find support at the $6,400, if the bears break the current support. Subsequently, the downtrend will resume.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin is below 80 % range of the daily stochastic. This implies that the market is in a bearish momentum. The bottom line is that it is contrary to the price action. Price has been fluctuating above the current support. Neither the bulls nor the bears have the upper hand.

BTC/USD Medium-term Trend: Bullish
On the 4 – hour chart, the trend line has been broken after the breakdown. Technically, the upward move has been terminated. Although, the direction of the market is unknown as price continues to consolidate above $6,800 support.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are sloping downward indicating the downward move. BTC has fallen to level 40 of the daily Relative Strength Index. The coin is in the downtrend zone and below the centerline 50.

General Outlook for Bitcoin (BTC)
Bitcoin is currently above $6,800 support. The support has been holding for the past three days. This is critical support as it will determine the direction of price. A rebound will catapult BTC to $7,400 resistance. A breakdown will depreciate Bitcoin to $6,400 low

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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Azeez Mustapha

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.