Bitcoin (BTC) Shows Strength, Approaches Critical Resistance Level

Bitcoin (BTC) Shows Strength, Approaches Critical Resistance Level

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 has risen above the $8,000 price level. As earlier anticipated in the previous analysis, the bulls have successfully broken the resistance at $7,600 and $7,800. The bears have succumbed to the bulls at the resistance levels. Bitcoin is making an upward move to a high of $9.200 and $10,300. Those are the levels the price is likely to stop over if the bullish trend is sustained. Nonetheless, it is likely that the bulls may face some resistance at $9,200.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are at the point of a bullish crossover. This indicates that Bitcoin is rising. The bulls have broken the downtrend line and if the price closes above it, the downtrend is said to be terminated. The Relative Strength Index Period 14 level70 indicates that Bitcoin is in the bullish trend zone. It indicates that BTC is likely to rise.

BTC/USD Medium-term bias: Bullish
On the 4 hour chart, the upward move commenced at $6,919 low since January 3. The bullish move has been consistent as the bulls broke the resistance levels. The market has reached a high of $8,300 but it is currently facing some resistance. The upward move will resume if the price retraces from the current price level.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
Bitcoin is trading at the overbought region of the daily stochastic. The price is hovering above the 80% range. This indicates that the bullish momentum has been unsteady. On January 5, the moving averages had a bullish crossover as the 21-day SMA crosses above the 50-day SMA. This indicates that Bitcoin is rising.

General Outlook for Bitcoin (BTC)
Bitcoin is back to the bullish trend zone as the coin targets the $10,000 mark. The bulls will reach the $9,200 price level which may cause some resistance and delay. Meanwhile, the breaking of the downtrend line is a positive move, as it ends the selling pressure. When the candlestick closes above the downtrend line, it intends to move upward except when there is overwhelming selling pressure.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,300
Stop: $7,800
Target: $9,200

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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.