Bitcoin (BTC) Likely to Move, as Uptrend Loses Steam above $9,000

Bitcoin (BTC) Likely to Move, as Uptrend Loses Steam above $9,000

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

BTC/USD Long-term Trend: Bullish
Interestingly, Bitcoin has climbed above $9,200 and has broken the resistance. The pair traded and reached  the $9,389 resistance, a sensitive historical price level. In October, BTC consolidated above this price level for two weeks and it fell. In July, at the same historical price level, Bitcoin rose to reach the previous highs.

Today, if the current resistance is broken by the bulls, Bitcoin will rally above $10,300. However, if the bears put up a good defense and they overcome, Bitcoin will be compelled to a sideways move. Nonetheless, the sideways move may last for some days before the resumption of the current uptrend.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
Bitcoin is trading and it is above 75% range of the daily stochastic. It implies that the coin is in a bullish momentum. However, if the stochastic is above 80% range, the market will be in an overbought region. The implication is that sellers may come in to push prices downward. In an overbought condition, the bulls will not be available to push the price upward.

BTC/USD Medium-term Trend: Bullish
On the 4-hour chart, the bulls have succeeded in breaking above $9,000 price level. On January 18, the bulls were unable to break above the resistance as BTC slumped to the low of $8,250. It was at this low, the coin bounces to break the $9,200 resistance. The battle is not over as the bulls are currently facing another resistance at $9,389.

BTC/USD - Daily Chart

4-hour Chart Indicators Reading
The MACD line and the signal line are above 100% range indicating a buy signal. Meanwhile, on January 28, the moving averages have a bullish crossover where 21-day SMA crosses over the 50-day SMA. This indicates that the price is rising.

General Outlook for Bitcoin (BTC)
Bitcoin has moved close to the $10,300 price level. The coin reached a high of $9,389 but it is finding it difficult to break the current resistance level. Presently, Bitcoin is in a range bound move below the resistance.

Expectantly, the current resistance is likely to be broken as the upward move resumes. A break above $9,300 will push Bitcoin to rally above $10,300.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $9,309
Stop: $9,000
Target: $10,300

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 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.