Bitcoin (BTC) Pauses above $7,843, Can Bears Reach the $7,000 Low ?

9 March 2020 | Updated: 9 March 2020

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’s upward move was interrupted because there was heavy selling above $9,500. The bulls buying power could not sustain higher price levels. The bulls were resisted at $9,200 as the downward movement continues. The price breakdown extended to the low of $7,842 after the support levels of $8,400 and $8,200 were broken.

At the moment the market is fluctuating above $7,800 support level. The bears are not done; there is a possibility of further price movement. Our bearish expectation is that the market may still fall low of either $ 7,000 of $6,800. In November and December, the price fell to the low of $ 6,900 before the resumption of an upward move.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
At the low of $7,842, Bitcoin has fallen below 20% range of the daily stochastic. Bitcoin will reach the oversold region if it continues its downward move to a low of $7,000. Meanwhile, BTC is in bearish momentum. The stochastic bands are pointing and approaching the oversold region.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, price breaks the support line of the descending channel and closed below it. This indicates that the downward move will continue. The price falls to a low of $7,842 and resumes consolidation. At the end of price consolidation, the downward move may continue or there will be a price breakout.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index level 20. This indicates that Bitcoin has fallen into an oversold region of the market. At this moment, buyers are likely to emerge in the oversold region.

General Outlook for Bitcoin (BTC)
Bitcoin is currently pausing after falling to a low of $7,842. There will likely a further downward move if the selling pressure resumes. It is anticipated that a further downward move to a low of $7,000 is possible. At the low of $7,000, Bitcoin will be said to reach the oversold region of the market. By default, buyers are likely to emerge to push ETH upward.

Instrument: BTC/USD
Order: Sell
Entry price: $7878
Stop: $8,000
Target: $7,000

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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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.