The bears have successfully defended the resistance levels, including $9,800, as the market drops to an $8,600 low. Further downward move or an upward move has been put on hold as Bitcoin resumes consolidation. The bears have not been able to push below $8,400. In the same vein, the bulls have not been able to push above $8,800. In other words, Bitcoin fluctuates between $8,400 and $8,800.
Since the bulls and bears are unable to penetrate these levels, then a price breakdown or breakout will do. The market has been consolidating for about a week. BTC will surprisingly drop to between $7,800 and $8,200 if the $8,400 support cracks. Alternatively, the market will jump to a high of $9,600 if the $8,800 resistance is breached. Meanwhile, price consolidation is ongoing within the price range.
The Relative Strength Index has been on a downward movement alongside the BTC price fall. The RSI is at level 37 indicating that Bitcoin is still in the downtrend zone. Although, it is below the centerline 50 which means it is likely to fall.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin is in a stalemate, neither falling nor rising. The market is stuck in a confined range. The price movement has been insignificant and it is anticipated that a price breakout or breakdown is imminent. In retrospect, the current price is the same price level in January where the market consolidated before its upward move. In January 2020, the market made a downward move to $8,250 low and rebounded. This is the reason why we have the previous uptrend of January.
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.