In the last 24 hours, the bulls have been making frantic efforts to breach the $7,000 overhead resistance. The bulls were unsuccessful as the price was resisted but the market fell below the resistance.
There is the possibility of a breakout if Bitcoin continues to trade below and close to the overhead resistance. The advantage is that the bulls can always push above the overhead resistance.
Nonetheless, analysts are of the view that Bitcoin will still fall to the low of $3,800 or $4,000 before rebound will occur. Nevertheless, Bitcoin may resume another downward move as the bulls fail in its upward move. A possible drop to $6,200 and $5,800 is expected. In the meantime, Bitcoin is fluctuating and trading below the overhead resistance.
The market is in a bullish momentum as Bitcoin is above the 50% Range of the daily stochastic. BTC was earlier in the oversold region twice before encountering this current momentum. The current momentum has been weak in view of the prevailing bear market.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin is facing rejection at the $7,000 overhead resistance. It is unlikely if the upward move is possible as Bitcoin faces selling pressure. Nevertheless, if BTC falls it may fall to the next support at $6,200 and later to $5.800.
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.