Bitcoin (BTC) Sinks May Reach the Low of $8,400 Support Level

Bitcoin (BTC) Sinks May Reach the Low of $8,400 Support Level

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 is gradually falling after failing to break above the overhead resistance. At first, it drops to a low of $9,600 after failing to break above $10,400 resistance. The price went up to retest the resistance at $10,200 and it fell again to the low of $9,290. On the third attempt, the bulls tested the $10,000 resistance but the downward move is continuing. The price reached a low of $9,400. However, if the downward move extends below $9,400, the downtrend may resume.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
BTC is currently below 50% range of the daily stochastic. This means that the coin is in bearish momentum. However, stochastic bands are making a U-turn indicating a change in the momentum. BTC is falling after the resistance at $10,000. In the interim, the price is almost below the EMAs which will propel the downward move.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, we have a descending channel showing the resistance levels of Bitcoin. In the last bullish move, the bulls were resisted at the $10,000 price level. BTC is falling and may reach a low of $9,290. The bottom line is that if the price falls below the lower channel, the downtrend will resume.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The Relative Strength Index period 14 is level 44. Bitcoin is gradually approaching the oversold region. BTC is trading below the centerline 50, which indicates that it is likely to fall. The 12-day and 50-day SMAs are sloping southward indicating the downtrend.

General Outlook for Bitcoin (BTC)
BTC price movement has been rather insignificant in the last couple of days. The bears have defended resistance levels as the bulls begin to retreat. BTC has fallen to a low of $9,400, and there is a further downward move. As the market continues its consolidation, the price may rebound or a breakout may occur.

Instrument: BTC/USD
Order: Sell
Entry price: $9,444
Stop: $9,900
Target: $8,400

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.