Bitcoin Failure to Rebound May Lead to Breakdown

Bitcoin has been ranging over $8,600 for the past four days. The consolidation is ongoing after a slight upward movement. Presently, the upward move has been scuttled at $9,200. The bulls could not sustain the price above $9,000 because of the presence of more active sellers at a higher price level. In retrospect, the bull market was also foiled at $10,480 in October because of the presence of active sellers.

In October, Bitcoin dropped to a low above $7,000. This also gives credence to the fact that sellers are active at higher price levels. Nonetheless, BTC is ranging over $8,600, if the price falls to the low of $8,200; it will act as strong support for the bulls. Assuming the price bounces at that support, the bulls can carry the coin above the $9,500 price level.

Bitcoin Indicator Reading 

BTC is trading and approaching level 67 of the daily RSI period 14. This implies that BTC is in the bullish trend zone. It also means that Bitcoin is rising and it is close to the overbought region of the market. The 12-day EMA is acting as support to Bitcoin.

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?

BTC consolidates and is well supported above the 12-day EMA. When the price bar is above the EMAs, the tendency to rise is possible. We expect the market to move up as the 12-day EMA has been holding for the past four days. The price is expected to break above $8,800 and $9,200 resistance levels. If successful, Bitcoin will reach a high of $10,300. Conversely, if the bears break below the EMAs, the market may fall to the low of $7,800 which will signal the downtrend.

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.