Since January 14, Bitcoin has been making an impressive move until January 19. The bulls took the price to a high of $9,200 but were immediately repelled. Before this time the bulls were struggling to break the resistance at $8,800 which was eventually broken. In the last 24 hours, Bitcoin has fallen to a low of $8,600. The price is ranging above $8,600 pending the direction of the next price movement.
Bitcoin’s downward move is above the 12-day EMA and has been holding since yesterday. Bitcoin will rise to retest the resistance level, once the support holds. Alternatively, if the selling pressure resumes and breaks below the EMAs, Bitcoin will further depreciate to the lows of $8,400 or $8,200. Besides, Bitcoin has been trading in the overbought region of the daily stochastic. The market has made a sharp U-turn indicating that the price is in bearish momentum.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin has taken a breather at the $8,600 price level. The direction of the market is likely to be defined as soon as the range-bound movement is broken. Bitcoin price may further drop because of the position of the stochastic indicator except the price action indicates otherwise. If the coin drops it may reach the low of either $8,200 or $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.