Bitcoin (BTC) Retraces, Faces Price Rejection

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

BTC/USD Long-term Trend: Bullish
Yesterday, Bitcoin was resisted at the $9,200 price level. The downward movement is ongoing as the price reached a low of $8,500. The bottom line is that if the bulls fail to break the $9,200 resistance, then the bears will sink Bitcoin.

In retrospect, in October 2019, Bitcoin reached a high of $9,600 price level. The bulls were resisted and the market made a downward move. A bullish candlestick made a retest at the $9,600 resistance and the coin dropped to a low of $6,800.

Daily Chart Indicators Reading:
The Relative Strength Index (RSI) period 14 level 60, indicates that the coin is in the bullish trend zone. Previously, the RSI was in the overbought region indicating that sellers are likely to come to push prices lower. The EMAs are still pointing northward indicating the bull market.

BTC/USD Medium-term bias: Bullish
On the 4 hour chart, after the resistance at the $9,200 price level, the price fell and break below the EMAs. Bitcoin is likely to further depreciate and the price is expected to reach a low of $8,200 and $7,800.

4-hour Chart Indicators Reading
The price bars are below the EMAs which indicate that the coin may face further depreciation. The price breaks below the support line and closes below it. This explains that the downward move is likely to continue. The coin is below 40% range but approaching the oversold region of the daily stochastic. It indicates that the coin is in a bearish momentum.

General Outlook for Bitcoin (BTC)
Bitcoin is making a gradual fall after the resistance at $9,200. The coin is retracing and may reach the previous lows. It is unclear where the market will find support. If the price finds support, the upward move may resume. Meanwhile, most of the indicators are showing bearish signals.

BTC Trade Signal
Instrument: BTC/USD
Order: Sell
Entry price: $8,500
Stop: $8,800
Target: $8,000

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