Bitcoin (BTC) Recovers Approaches $10,400 Overhead Resistance

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

BTC/USD Long-term Trend: Bullish
Bitcoin had been on a downward move because of the bull’s failures to break above the $10,400 overhead head resistance. BTC fell and found support at $9,500 low and then rebounded. The bulls have earlier push prices above the $9,800 support level. Undoubtedly, the upward move is likely to retest the $10,400 overhead resistance.

It has been established that a breakout above $9,800 will result in the coin rally above $10,400. The question is, can the bulls overcome the $10,400 overhead resistance? It is also anticipated that if the bulls are successful and price breaks the $10,400 overhead resistance, the momentum will extend above $11,500.

Daily Chart Indicators Reading:
At the moment, BTC is below 75% range of the daily stochastic but the bands are gradually making U-turn to conform to the price action. In other words, the bearish momentum is turning to bullish momentum. One common feature of the uptrend is that as long as the price is above the EMAs, the uptrend is ongoing.

BTC/USD Medium-term Trend: Bullish
On the 4 hour chart, BTC downward move was terminated at the support of $9,500. The candlesticks are testing the support with protruding wicks. This indicates that the coin is testing a strong demand zone.

4-hour Chart Indicators Reading
Presently, the Relative Strength Index is level 48 indicates that Bitcoin is still in the downtrend zone. This is because it is below the centerline 50. As BTC is moving up, the RSI is also moving in an upward move. For the uptrend to be in a proper perspective, the price must break above the bullish trend line.

General Outlook for Bitcoin (BTC)
The upward move has resumed as the bulls push the price above the $9,800 price level. The $9,800 support is linked to the target price of $10,400. In the mean time, it will be interesting if the bulls are successful above the overhead resistance. The breaking of the $10,400 has become a jinx since August 2019. This will probably be Bitcoin’s first step to reach the $20,000 mark in 2020.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $9884
Stop: $9800
Target: $10,400

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