Bitcoin (BTC) in a Dilemma, Can Bulls Break the $7,000 Overhead Resistance?

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

BTC/USD Long-term Trend: Bearish
Bitcoin has continued to be stable above the breakout level of $6,400. The price movement is insignificant as the bulls continue to defend the breakout level. The bears also defend the $7,000 overhead resistance. On the upside, if the bulls succeed in breaking the $7,000 resistance, Bitcoin will rally to the high of $8,500. Conversely, if the bears succeed in pushing the price below $6,400, BTC will fall to $5,500 low. In the meantime, the market is approaching the resistance line of the descending channel.

Daily Chart Indicators Reading:

Today, Bitcoin is at a 75% range of the daily stochastic. The momentum of the coin is increasing as it approaches the overbought region. The moving averages are pointing downward indicating the bear market.

BTC/USD Medium-term Trend: Ranging
On the 4- hour chart, the BTC is an upward move. The market structure is still the same. The price is making a series of higher highs and higher lows. Also, a bullish trend line has been drawn indicating the support levels of price. Presently, the market is in an uptrend. On the upside, if price breaks and closes below the trend line, the upward move will be terminated.

4-hour Chart Indicators Reading
The moving averages are sloping upward indicating the upward move. There is a bullish crossover as the 21-day SMA crosses over the 50-day SMA. The Relative Strength Index has risen to level 62. BTC is still in the uptrend zone.

General Outlook for Bitcoin (BTC)
The market has been quiet in the last 48 hours. The price is neither moving up nor going down. Bitcoin should have reached the resistance line of the descending channel if the market is moving. The breaking of the resistance line of the channel or the bears’ resistance will determine the direction of the market.

Instrument: BTC/USD
Order: Buy
Entry price: $6,802.30
Stop: $6,732.30
Target: $7,002.30

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