Bitcoin (BTC) Uptrend May Continue Despite Recent Retracement

Bitcoin (BTC) Uptrend May Continue Despite Recent Retracement

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

BTC/USD Long-term Trend: Bullish
Yesterday, Bitcoin traded and climbed above the $10,000 price level. The upward move to the new high was short-lived as the bulls were resisted. The bulls were resisted at a high of $10,165 and the coin fell to the low of $9,812 at the time of writing. It appears the current low is holding as the bulls make an upward movement. The original target of the bulls is the $10,360 price level.

On the upside, if the coin picks up momentum, the bulls will be able to push the price above $10,200 resistance. If successful the momentum can be sustained. Then Bitcoin will be able to attain a high of $10,360. Conversely, if the downward move continues or the bears may break below $9,812 support, BTC may drop to the low of $9,400 or $9,200.

BTC/USD - Daily Chart

Daily Chart Indicators Reading:
Bitcoin has been on a downward move because the coin is trading above 80% range of daily stochastic. The stochastic bands are making a U-turn downward. This indicates that BTC is in the overbought region of the market. This is the region where sellers are generated to push the price downward. Bitcoin is falling as a result of the absence of buyers. The upward move may continue as soon the coin finds support.

BTC/USD Medium-term Trend: Bullish
On the 4 hour chart, Bitcoin reaches a high of $10,200. The bulls were resisted after testing the resistance on two occasions. The coin fell to a low of $9,802 support. Incidentally, this was the previous resistance where the bulls had broken in time past. If the bears break this current level the selling pressure will resume.

BTC/USD - - 4 Hour Chart

4-hour Chart Indicators Reading
Bitcoin has fallen to level 47 of the Relative Strength Index period 14. This indicates that the coin is below the center line 50. Bitcoin is now a downtrend zone. On the downside, if the selling pressure continues and breaks the bullish trend line, the uptrend is said to be terminated.

General Outlook for Bitcoin (BTC)
On the daily chart, the price is still above the 50-day and 21-day SMAs which indicates that the uptrend is ongoing. Bitcoin will find support and resume the upward move. The $9,800 support is likely to hold. If it holds, the uptrend will resume. Conversely, if the support cracks, Bitcoin will depreciate further.

BTC Trade Signal
Instrument: BTC/USD
Order: Buy
Entry price: $9,817
Stop: $9,700
Target: $10,300

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.