Bitcoin (BTC) has been trading consistently above $10,800 for the past week despite its inability to trade above $11,000.
Since September 16, buyers have made several attempts to push BTC above $11,000. The price has broken the resistance twice to reach a high of $11,041 and $11,174 but the bullish momentum dries up at higher price levels. Buyers could not sustain the uptrend. The significance of breaking the $11,000 resistance is for BTC to resume upside momentum.
The king coin may have price acceleration to retest or break the $12,000 overhead resistance. Besides, the bull market will resume as BTC trades beside the other altcoins. Conversely, if the current resistance remains unbroken, Bitcoin will fall and be compelled to a sideways move between $10,500 and $11,000. Yesterday, BTC retraced to $10,800 support because of rejection at the recent high. Today, the coin has resumed a fresh uptrend and it is trading above $10,800.
The crypto is above 80% range of the daily stochastic. It indicates that the market has reached the overbought region. Sellers have emerged as price dropped to $10,800. Nevertheless, the coin has been consistently trading above the EMAs. The market will continue to rise as long as price is above the EMAs.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7,000, $6,000, $5,000
The price action is showing bearish signals after the rejection from the recent high. The coin will further decline if the $10,800 is breached. Today, price has retested the $11,000 resistance to resume the downtrend. On September 20 downtrend, a green candle body retraced and tested 61.8% Fibonacci retracement level. It indicates that BTC will fall and reach the 1.618 Fibonacci extension level. That is a low of $10,520.
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.