Bitcoin (BTC) reaches the oversold region at $9, 100 amidst bullish expectation

Bitcoin (BTC) reaches the oversold region at $9, 100 amidst bullish expectation

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 has continued its downward movement after a disappointing uptrend. The uptrend has been terminated after the bulls failed to break the $10,400 overhead resistance. The bulls retested the $10,200 and $10,000 resistance levels but were repelled. At the $10,000 resistance, the market fell to the support of $9,600 and pulled back.

It was indicated that if the bears succeeded in breaking the support at $9,400, the downtrend would resume. Today, BTC has resumed a downward move as it reaches the support at $9,200. Nonetheless, the support at $9,200 has been breached. We expect the market to fall to the next support at $8,400, except for minor resistance at $8,500.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin is in a downward move. The daily stochastic has indicated that BTC is below 20% range. This implies that BTC is in a strong bearish momentum. The coin is said to reach the oversold region of the market. It indicates that selling has been overdone. The coin will remain in that condition until buyers emerge to push it upward.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, before the downward move, the bulls tested the $10,000 resistance and were resisted. The price fell to a low of $9,600 and pulled back to retest the $9,800 resistance. At the $9,800 resistance, the selling pressure resumes. BTC has fallen to a low of $9,100. On the downside, if the price breaks the support line of the channel, selling pressure will continue.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 is level 28. At the price of $9100, the RSI has reached level 28 which is the oversold region of the market. The downward movement of the coin is doubtful as buyers are likely to emerge. The coin will remain at this level until buyers resume.

General Outlook for Bitcoin (BTC)
It appears at the low of $9,100, Bitcoin is said to be oversold. BTC will resume upward move once the buyers are on hand to push the coin upward. The Stochastic and the Relative Strength Index is pointing to an oversold condition of the market. This indicates that BTC will rise as we await the arrival of the bulls.

Instrument: BTC/USD
Order: Sell
Entry price: $9,100
Stop: $9,300
Target: $8,400

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.