Bitcoin Holds Above $8,500 Support, Targets $9,200 Resistance

Bitcoin has remained stable after it turned down on April 30, because of the bulls’ inability to sustain the uptrend above $9,200. The market retraced to $8,597 low and resumed fluctuation between $8,500 and $9,500.

The bulls have successfully defended the support levels between $8,400 and $8,600. It is believed that a break below $8,400 will propel the downtrend to extend to $7,800 low. The king coin appears to be trading near the resistance zone. 

Yesterday, BTC rebounded twice above $9,000 resistance and twice the bulls were repelled. Price is retracing to the support above $8,800. Bitcoin is still being resisted from $9,000 and $9,200. Buyers have failed to break the resistances on a normal daily purchase of Bitcoin. Perhaps, a rebound above $8,800 support will propel price to break through the resistances of $9,000 and $9,500. Bitcoin will rise to $9,500 and $10,000 if the bulls scale above the resistances.

Bitcoin indicator reading 

Bitcoin has been trading below the $9,200 resistance over the last one week. BTC was previously in the overbought region of the market but it is now above 80% range of the daily stochastic. The stochastic bands are above 80 % range depicting the sideways move.

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?

For the past week, Bitcoin has been trading consistently below the $9,200 resistance. Certainly, a breakout at the current resistance zone will propel price to rally above $9,500 and extend to $10,000 resistance. The price action and the indicators are showing bullish signals in favour of the bulls.

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.