Bitcoin Breaks Consolidation, Attempts $7,700 Resistance

Interestingly, Bitcoin has reached the $7,700 price level at the time of writing. This was the level of the price spike last Thursday. BTC impressively moved from $6,800 to $7,700.

Unfortunately, this move affected crypto traders negatively. The move came as a surprise which left many traders to have liquidated accounts. Expectantly, another breakthrough over $7,700 area will catapult the coin to reach the highs of $8,500 and $9,000.  

However, the attainment of the recent high of $7,700 may be short-lived as the market approaches the overbought region. Certainly, sellers will emerge in the overbought region, as BTC may make a downward move. Analysts are of the opinion that the downward move is sustained above $7,200 and $7,400 support level. A break below these support levels will amount to a downward move.  

Bitcoin Indicator Reading 

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7, 000, $6, 000, $5,000 

Certainly, price is above the 80% range of the daily stochastic. This means that the market is now in the overbought region. Sellers may emerge to push prices downward. However, in some trending markets, the overbought or oversold regions may not hold. Therefore, the uptrend may continue.

What Is the Next Direction for BTC/USD?

Bitcoin has moved to last Thursday’s high of $7,700. What we are expecting is a further upward move to revisit the $8,000 and $9,000 resistances. Bitcoin approaches the $7,700 resistance; a rebound above $7,700 is possible. The market will move up to $8,000 and $9,000, if successful.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.