Bitcoin (BTC) Resumes Consolidation After Failing to Sustain Above $6,000

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 crashes below $6,000 as the bulls were unable to sustain the upward move. The price is unstable below and above the $6,000 price level. However, since the upward move is interrupted, the coin will revert to its previous range between $4,500 and $6,000. Nonetheless, during fluctuation, the pair may fall below $5,000 which will compel the bulls to make strong buying from the lower price range. On March 16, buying at $4,400 low enables the bulls to reach a high of 7,000. Unfortunately, the bulls could not sustain the upward move.

Daily Chart Indicators Reading:
Bitcoin is above 40% range of the daily stochastic. This implies that the coin is in a bullish momentum but it is weak as the bear market is still in place. BTC will resume its upward move if it breaks the resistance line of the descending channel and closed above it.

BTC/USD Medium-term Trend: Ranging
On the 4- hour chart, the BTC is in a sideways trend. The market has been fluctuating between levels of $4,400 and $6,000. The bulls broke the upper price level but have fallen back into the range-bound zone because of stiff resistance at $7,000.

4-hour Chart Indicators Reading
The 21-day and 50-day SMAs are sloping horizontally indicating the sideways trend. There is a bullish crossover as the 21-day SMA crosses over the 50-day SMA. The Relative Strength Index has fallen to level 48 after a retracement. BTC is still in the downtrend zone.

General Outlook for Bitcoin (BTC)
Bitcoin has turned down from the $7,000 resistance. The bulls could not sustain the upward move as Bitcoin falls from its recent high. On the downside, if the price continues its downward move and breaks the $4,500, BTC may drop to the low of $3,800. Presently, BTC has fallen to the support of 50-day SMA.

Instrument: BTC/USD
Order: Buy
Entry price: $5,935.50
Stop: $5,800
Target: $6,135.50

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