Bitcoin (BTC) Uptrend Likely, as It Attempts to Breach $8,400 Resistance

Bitcoin (BTC) Uptrend Likely, as It Attempts to Breach $8,400 Resistance

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

BTC/USD Long-term Trend: Bullish
In the last 48 hours, the bulls have shown strength as they continue to sustain prices in the bullish trend zone. On January 10, Bitcoin made a retest at $8,200 and pulled back. The coin now fluctuates below the $8,200 resistance level but above the $8,000 support level. This fluctuation is a period of pause as the coin takes a breather.

The implication is that the price may breakout or breakdown. Surprisingly, Bitcoin will drop to the low of $7,000, if the bears break below the $8,000 price level. Conversely, the coin will rally above the $8,400 resistance, if the bulls break above $8,200 . Meanwhile, the fluctuation is ongoing as the coin makes an upward move.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
On December 7, the price broke the downtrend line and closed above it. The upward movement will be guaranteed if the bulls hold above the downtrend line. Meanwhile, the coin will be in a negative position, if the bears break below the downtrend line. The market is in a bullish momentum as it trades above 75% range.

BTC/USD Medium-term bias: Bullish
On the 4 hour chart, the market is fluctuating between $8,200 and $8,000. Each time the bulls test the resistance at $8,200, the price will drop to the $8,000 low. The bulls are desperate as the coin moves up for the third time.

BTC/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The price bars are above the 12-day EMA and the 26-day EMA indicating price upward move. The Relative Strength Index (RSI) period 14 level 57 indicates that the coin will rise as it is above the centerline 50. Nevertheless, if the price falls below the EMAs, the coin will drop.

General Outlook for Bitcoin (BTC)
Bitcoin’s upward move is likely to reach its target price of $9,200. The price is above the EMAs and the downtrend line is breached. This gives us the assumption that Bitcoin has the chance of an uptrend. On the upside, if the bulls break the $8,400 resistance, Bitcoin will rally above $9,200.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $8,000
Stop: $7,500
Target: $10,300

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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.