Bitcoin (BTC) Is Retracing to Important Support for a Possible Breakout

Bitcoin (BTC) Is Retracing to Important Support for a Possible Breakout

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 is falling after the bulls fail to overturn the overhead resistance at $10,400. The resistance at $10,400 has been a strong resistance since August 2019. The bears have succeeded in breaking the support at $9,800. This was the price level where the coin rebounded a week ago.

The price is falling and it is approaching the next support at $9,200. When prices make a downward move, the bearish momentum is always strong. On the downside, if the bulls fail to defend the support at $9,200, BTC will fall to the low of $8,400. Nonetheless, if the bears break the support of $9,200, the downtrend has resumed.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin is falling and approaching the support line of the ascending channel. If the price breaks the support line and closed below it, it indicates that the selling pressure is ongoing. BTC is now trading at level 50 of the Relative Strength Index. It indicates that the market has reached equilibrium at the time of writing.

BTC/USD Medium-term Trend: Bearish
On the 4 hour chart, BTC has resumed a downward move as the bears broke the supports of $10,200, $9,800 and it is approaching the low of $9,200. Given the current downtrend, if the bears break the low of $9,200, Bitcoin will drop to the low of $8,400. Bitcoin will have a respectable balance if the bulls defend the low of $9,200.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The EMAs have formed a bearish crossover as the 21 day SMA crosses below the 50-day SMA. The price breaks the bearish trend line and closed below it. This shows that the selling pressure will continue. Bitcoin is below 20% range of the daily stochastic. That means that BTC is in a strong bearish momentum.

General Outlook for Bitcoin (BTC)
Undeniably, Bitcoin is now on a downward move. The price will fall and reach a low of $9,200. Surprisingly, a rebound may take place if the bulls defend the support at $9,200. It is doubtful if the bulls will be able to defend the current level as the bearish momentum is strong.

BTC Trade Signal
Instrument: BTC/USD
Order: Sell
Entry price: $9689
Stop: $9800
Target: $9,200

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.