Bitcoin (BTC) Stable as Bulls and Bears Continue Price Tussle between $4,500 and $5,500

Bitcoin (BTC) Stable as Bulls and Bears Continue Price Tussle between $4,500 and $5,500

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

BTC/USD Long-term Trend: Bearish
Today, Bitcoin has been trading in a confined range of $4,500 and $5,500. The bears took the price to a low of $4,500 and were repelled. The bulls have earlier been resisted at the $5,500 and $6,000 resistance. These are the reasons BTC is fluctuating for the past five days. The bottom line is that price will either have a breakdown or breakout.

Bitcoin is already fallen in the oversold region. By default, buyers are expected to appear to push Bitcoin upward. It is doubtful if the downward move will continue as selling has been overdone. However, if the market eventually breakdown, the coin will fall to a low of $3,800. On the upside, a breakout will propel BTC to a high above $6,000.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin has been oversold at the current market price. It is trading at level 23 of the Relative Strength Index. This indicates a buy signal as buyers are expected to emerge to push BTC upward.

BTC/USD Medium-term Trend: Bearish
On the 4- hour chart, the BTC is still fluctuating between $4,500 and $5,500. The range-bound levels are yet to be broken. Today, the bears tested the lower price level were repelled.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day and 50-day SMAs are sloping southward indicating the downtrend. Bitcoin is below 20% range of the daily stochastic. This explains that the coin is in the oversold region suggesting buyers to take control of price.

General Outlook for Bitcoin (BTC)
The price tussle between range-bound levels of $4,500 and $5,500 is ongoing. Neither the bulls nor the bears have the upper hand. Certainly, price will break out of this consolidation if the momentum can increase. Since the bears fail to break the lower price range, the bulls have the advantage with the bullish momentum.

Instrument: BTC/USD
Order: Buy
Entry price: $4,960
Stop: $4,000
Target: $9,000

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.