Bitcoin (BTC) Ranges as the Market Takes a Breathe

Bitcoin (BTC) Ranges as the Market Takes a Breathe

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

BTC/USD Long-term Trend: Bullish
After February 11 breakouts, Bitcoin has been characterized by small body candlesticks like Doji and spinning tops. These candlesticks describe the indecision between the buyers and sellers concerning the direction of the market. The price is now fluctuating in a tight range between $10,200 and $10,400. This is the fourth day of indecision between the bulls and the bears.

Can we expect the bulls to break the next major resistance at $10,360? Then continue with the upward move. Or allow the bears to erase the bullish gains and take us back to the bear market? Definitely, in a matter of days, the $10,200 support or $10, 400 resistance will be broken to know the direction of Bitcoin. Meanwhile, Bitcoin is in consolidation above $10,200 support.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
Bitcoin has consistently remained to trade in the overbought region of the daily stochastic since on January 29. In the overbought region, the price is sloping between 95% and 80% range. This makes the bullish momentum to linger in the overbought region. Meanwhile, as soon as the bullish momentum is exhausted, sellers will take control in the overbought region.

BTC/USD Medium-term Trend: Bullish
On the 4 hour chart, the market has remained the same in the last four days. The bulls and bears have failed to breach the respective levels as the market continues its range-bound movement. The bears have carefully defended the $10,400 price level. Similarly, the bulls are also putting the bears far away from the current support.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 56 indicates that Bitcoin is in an uptrend zone. The coin is above the centerline 50 which indicates that the coin will rise. The 21-day and 50-day SMAs are sloping horizontally indicating the uptrend.

General Outlook for Bitcoin (BTC)
Bitcoin is now in consolidation above $10,200 as the bulls fail to break the next major resistance. The RSI period 14 and the daily stochastic have all indicated that the price is in the uptrend zone. The market intends to rise. As the market continues its consolidation, we should expect a breakout and breakdown.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $10,234
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.