Bitcoin Recovers Above $8,500 Support, a Further Decline Is Likely

After two days of struggle on May 8, the bulls were unsuccessful in breaking the $10,000 resistance. It was a hurdle too high to jump over.

Initially, it was a minor retracement, but Bitcoin crashed to $8,101 low after the bears broke the $9,400 and $9,200 support levels. The bulls were shocked but recovered immediately above $8,500. Bitcoin is trading above $8,598 at the time of writing. Certainly, buyers may want to push prices upward again after the downtrend.

It will be an uphill task as sellers will defend the $8,900 and $9,100 price levels. For the bulls to have a breakthrough, a rebound above $8,500 will propel price above $9,000. The momentum can extend to $9,500. The price can rebound above $8,000 low if it drops to such a level. Conversely, at the moment a downward move is expected. Bitcoin will sink further if the $8,000 support cracks.

Bitcoin indicator reading 

With the recent downtrend, Bitcoin trades within the ascending channel. Bitcoin will resume uptrend if the price breaks above the resistance line and closes above it. Similarly, a break below the support line signals the resumption of the downtrend. Presently, BTC is below 80% range of the daily stochastic. It indicates a bearish momentum. Nevertheless, the price action is also indicating a bearish signal.

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

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

What is the next direction for BTC/USD?

Bitcoin is still in an uptrend as long as it trades within the ascending channel. In the meantime, Bitcoin will be fluctuating between the resistance line and the support line of the channel. The uptrend is guaranteed if the price bars are above the EMAs. The reverse will be the case if the price is below the EMAs.

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.