Qtum (QTUM) Turns Down From $3.0 Resistance, a Rebound Likely at $2.50 Support

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

QTUM/USD Long-term Trend: Bullish
Qtum is in an upward move after breaking the downtrend line. In retrospect, the pair has been in a bear market since June 29, 2019. In June, Qtum was in a bull market; the bulls have taken price to the high of $5.50 but were resisted. Unfortunately, as the buyers could not penetrate the resistance, the coin was compelled to a downward move. The first bearish impulse was at a low of $2.67. The price made a pullback to the resistance at $3.0.

After retesting the resistance, the downward move continued to a low of $1.50. The bulls defended the support at $1.50 as the pair resumed a sideways trend. Later the bulls have the upper hand as the downtrend line was broken. Interestingly, as the downtrend line was broken, the upward move resumed. The coin reached a high of $3.0 but was resisted. On the downside, if the price falls to the low of $2.50, the upward move may resume.

Daily Chart Indicators Reading:
Qtum is below 80% range of the daily stochastic. It means that the coin is in bearish momentum. Meanwhile, a Fibonacci tool was drawn to determine the selling pressure. A bull candle tested the 0.786 retracement level which indicates the coin is likely to reverse at the 1.272 Fibonacci extension level.

QTUM/USD Medium-term Trend: Bullish
On the 4-hour chart, Qtum is in a smooth uptrend as the market reached a high of $3.0. The bulls tested the resistance at $3 twice but were unable to penetrate it. In the process of time, a bearish double top was formed. The pattern resulted in a downward move.

4-hour Chart Indicators Reading
The Relative Strength Index period 14 level 40 indicates that the coin is in the downtrend zone. It is also below the centerline 50 which indicates that the coin is likely to fall. As the price broke below the bullish trend line, a retest was made which resulted in the downward move. It is expected that the downward move will reach a low of $2.50.

General Outlook for Bitcoin (QTUM)
Qtum is in a downward move. It is anticipated that if price retraces to the support of the 21-day SMA, an upward move will resume. Conversely, if price breaks below the SMAs, the downtrend will resume.

QTUM Trade Signal
Instrument: QTUM/USD
Order: Buy Limit
Entry price: $2.50
Stop: $ 2.10
Target: $3.50

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