Bitcoin slumps back to its previous price range after rejection at the $7,000 resistance. Earlier on the bulls have bought above the $5,000 support; this propels the market to reach the $7,000 price level.
A Doji candlestick appeared during the upward move indicating that buyers are unable to keep the price higher, as sellers emerge to push the price back to its opening price.
As Bitcoin retraces it will find the first support at $5,800. At the low of $5,800, a rebound may likely occur which will cause the price to rally above the initial resistance at $6,800. Conversely, if the selling pressure is severe and causes the $5,800 to crack, BTC may fall to the low of $5,200. BTC is currently fluctuating between $4,500 and $6,000. A breakdown may occur if the downward move extends to $4,500 low.
In the meantime, Bitcoin is above the 40% range of the daily stochastic. It indicates that BTC is still in bullish momentum. The bulls are appearing after the oversold region of the market.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin is being rejected at the $7,000 overhead resistance. BTC has fallen back to the range-bound zone. This indicates that the market will experience another round of range-bound movement.
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.