Bitcoin (BTC) Risks a Downward Move, If It Fails to Sustain Above $6,000

Bitcoin (BTC) Risks a Downward Move, If It Fails 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 now trades above $6,000 after failing to breach the $7,000 resistance. The price is consolidating above the $6,000 support. Before this time, the pair was range-bound between $4,400 and $6,000. The price fluctuated between the range-bound zones for over a week. During the period the bears’ attempt at the $4,400 support would have pushed BTC to the low of $3,800.

Immediately, the bulls put up a challenge as buying was done at $4,400 low. This pushed the BTC to a high of $5,000. The bulls bought at the $5,000 price level and price rose to $7,000. Unfortunately, the bulls were resisted at the $7,000. BTC is retracing to the low above $6,000.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin is above 25% range of the daily stochastic. This implies that the coin is in a bullish momentum but it is weak under the prevailing bear market. The price is still approaching the support line of the channel. BTC will resume its upward move if it breaks the resistance line and closed above it.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, the BTC is trading in a descending channel. BTC is retracing from the $7,000 after failing to breach the resistance level. The price is now consolidating above $6,000.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day and 50-day SMAs are sloping upward. There is bullish crossover as the 21-day SMA crosses over the 50-day SMA. The Relative Strength Index has fallen to level 57 after a retracement. BTC is still in the uptrend zone.

General Outlook for Bitcoin (BTC)
Bitcoin is still consolidating above $6,000. The bulls have to buy at the current support for the price to stabilize. The downtrend will resume if it falls to the previous range-bound zone.

Instrument: BTC/USD
Order: Buy
Entry price: $6,164.50
Stop: $6,000
Target: $6, 364, 50

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.