Bitcoin (BTC) in a Stalemate, Can the Bulls Break the Resistance at $10,360?

Bitcoin (BTC) in a Stalemate, Can the Bulls Break the Resistance at $10,360?

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 is on the downward move because of the resistance at $10,400. Yesterday, the market reached a high of $10,460 but the bulls could not sustain the upward move above the resistance at $10,360. In retrospect, the bulls have succeeded in breaking above $10,000 but have been unsuccessful to trade above the $11,000 since August 2019. Today, Bitcoin is trading above the $10,000; can it overcome the next major resistance at $10,360?

This will depend on the buying power of the coin. On the upside, a break above $10,360 will push BTC above $11,000. Bitcoin is currently fluctuating above $10,000. It is anticipated that the $10,000 support is likely to hold, for the resumption of an upward move. However, if the $10,000 support cracks, BTC will drop to $9,800.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
Presently, Bitcoin has dropped to level 65 of the Relative Strength index period 14. BTC was recently overbought, that was the reason for its downward move. It is expected that the retracement ought to be at the next support. Meanwhile, the 21-day SMA and the 26-day SMA are pointing northward indicating the uptrend.

BTC/USD Medium-term Trend: Bullish
On the 4 hour chart, the bulls were making concerted efforts to break the $10400 resistance. The price bars are below the resistance before it was eventually resisted. The price is still hovering above $10,000. BTC will bounce back if the current support holds. Meanwhile, the 21-day SMA provides support for the price.

4-hour Chart Indicators Reading
Bitcoin has also dropped below 80% range of the daily stochastic. It means that the coin is in bearish momentum. The bearish momentum is nearing exhaustion. Meanwhile, if the downward move continued and breaks below EMAs and the trend lines, the selling pressure may resume.

BTC/USD - 4 Hour Chart

General Outlook for Bitcoin (BTC)
Bitcoin is in a deadlock as the bulls are yet to break the resistance at $10,360. The bottom line is that Bitcoin has not traded above $11,000 for the past five months. Nonetheless, if the bulls break the current resistance, the current deadlock will be broken. This will largely depend on the price action if the $10,000 support holds.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $10,307
Stop: $10,000
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.