Bitcoin (BTC) Retraces, Encounters a Breakdown below $9,400 Support

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 faces rejection as bulls were resisted at the $10,000 resistance. The bulls tested the $10,000 resistance twice before being repelled. A bearish double top was formed as the market retraced. The price retraced below the breakout level of $9,400 signaling the resumption of the downtrend. The uptrend could have continued if the $9,400 support is held. Bitcoin fell to the $8,101 low and made a downward correction. BTC is currently trading at $8,610 at the time of writing.

Daily Chart Indicators Reading:
After the downward correction, BTC is at level 54 of the daily Relative Strength Index. It indicates that the market is in the uptrend zone. The coin is likely to rise. The 21-day SMA and the 50-day SMA are sloping upward.

BTC/USD Medium-term Trend: Bullish
On the 4– hour chart, Bitcoin is in an uptrend. A trend line is drawn to indicate the support levels of price. During the downtrend, the bears broke the trend line as the market dropped to $8,101 low. As price breaks the trend line and closes below it, the selling pressure is likely to continue.

4-hour Chart Indicators Reading
The price breaks below the trend line and closes below it. This means a further downward move. The crypto is below 40% range of the daily stochastic. This implies that BTC is in a bearish momentum. The 12-day and 26-day EMAs are sloping upward.

General Outlook for Bitcoin (BTC)
Bitcoin has resumed a downward move as the coin retraced below $9,400 support level. Bitcoin downward move will continue if price breaks below $8,400 support level. Nevertheless, if the critical support of $8,000 cracks, the downtrend will resume.

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