Bitcoin (BTC) Rebounds at $9,800, a Retest at $10,400 Probably

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 failing to break above $10,400, the bulls and bears were tussling with the price between $10,200 and $10,400 for five days. The bears succeeded in breaking the $10,200 support after consolidation. The bears won the first victory as the coin fell to the low of $9,800. Just like in the previous low at $9,100, the bulls have the advantage of a rebound.

A strong bounce at $9,800 will push Bitcoin to the high of $10,400. Nonetheless, the current momentum can extend to the high above $11,000, if the current move is successful. On the other hand, if the bears continue to push the coin below $9,800, the selling pressure may resume. However, this will dampen market sentiment.

 

Daily Chart Indicators Reading:
Bitcoin has lingered in the overbought region since January 29. It appears the strong bullish momentum has been exhausted as the stochastic bands fall below 80% range of the daily stochastic. Bitcoin is now in a bearish momentum as the market falls. However, it is not clear how far the bearish momentum will last. Ordinarily, the selling pressure will resume, if price breaks below the 21-day SMA and the 50-day SMA

BTC/USD Medium-term Trend: Bullish
On the 4 hour chart, the bears broke below $10,200, 21-day and 50-day SMAs as the price fell to the low of $9,800. BTC is bouncing back after testing the support at $9,800. Certainly, the bulls will retest the resistance at $10,400 if the momentum is sustained.

 

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 44 indicates that Bitcoin is in a downtrend zone. Bitcoin is below the centerline 50 which indicates that the coin may fall. This is in contradiction with price action as the market is making an upward move. The coin is rebounding after testing the low of $9,800. The 21-day and 50-day SMA are still sloping horizontally indicating the uptrend.

General Outlook for Bitcoin (BTC)
Bitcoin has resumed its upward move after correction to the low of $9,800. The upward move is expected at a high of $10,400. Interestingly, if the resistance at $10,400 is broken, BTC will rally above $11,000. If the bulls are successful, Bitcoin will be trading above $11,000 for the first time since August 2019. We still expect the market to continue its upward move.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $9,998
Stop: $9,100
Target: $11,000

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