Bitcoin (BTC) Rally Above $9,100 After Breaking Key Level

28 January 2020 | Updated: 28 January 2020

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

BTC/USD Long-term Trend: Bullish
According to earlier predictions, the bulls have broken the $8,800 resistance and the coin is approaching the $9,200 price level. Bitcoin is making an impressive upward move. What we are expecting is the breaching of the $9,200 resistance. A successful breakout will extend to the $10,300.

Meanwhile, the bears are defending $9,200 resistance as the bulls make some retracement. On the downside, if price retraces and breaks below the $8,800 support, Bitcoin will fall to $8,600. If the selling pressure persists, the coin will drop to a low of $8,250. On the upside, if price retraces and finds support at $8,800, a sideways move will ensue.

BTC/USD - Daily chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are trending northward indicating the upward move. The 21-day SMA acts as a support to Bitcoin. The price will continue to rise as long as it is above the EMAs. The Relative Strength Index period 14 has risen to level 65 indicating that Bitcoin is rising.

BTC/USD Medium-term Trend: Bullish
On the 4-hour chart, the coin shows the breakdown of the downward move to a low of $8,250. The price bounces at the low and makes its upward move. Today the bulls have reached a high of $9,198 but are facing selling pressure. It is not certain the extent of a price retracement.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
It appears Bitcoin is trading in the overbought region of the daily stochastic. The market is above 80% range. This implies that the bulls will not be available to push the price upward. Sellers are bound to come in to push the coin downward.

General Outlook for Bitcoin (BTC)
Bitcoin as shown strength has it pulled through the resistance level. The coin trades above the $9,000 price level but faces the $9,200 resistance. Bitcoin has one hurdle to jump over to cross above the $10, 300 price levels.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,988
Stop: $8,700
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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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.