Bitcoin now fluctuates above $8,000 because of its inability to break through the $8,200 resistance. Recently, Bitcoin surged to the high of $8,400 but could not penetrate the resistance as the coin dropped to $7, 800 low. The bulls made another push but were stopped at $8,200. The price tussle is between the low of $8,000 and a high of $8,200.
Within this range, the market will determine the direction of Bitcoin. Presently, the bulls have made three failed attempts at $8,200 resistance. Assuming that the bulls are successful Bitcoin will rally above $9,200 price level. As price fluctuates and retraces, it portends danger for Bitcoin. There is an indication that if the bears break below $7,800, the selling pressure will resume. This will sink Bitcoin either to $7,600 or $7,000 low.
Currently, BTC fluctuates above the downtrend line. It will portend negatively if the bears succeed in breaking below the line. Meanwhile, the bullish move has been sustained because price bars are over the EMAs. The coin is in a bullish momentum as it fluctuates below and above the overbought area of the daily stochastic.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin is consolidating above the $8,000 mark as the bulls fail to break above the resistance. The bulls are under pressure as the market fluctuates in a tight range. The bulls are to ensure that the $8,000 support is well defended. Bitcoin will lose its bullish gains if the critical support cracks. Traders should adjust their stop loss to $7,800 low as the coin fluctuates above $8,000.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.