Unfortunately, the bulls’ hope of breaking the $7,000 overhead resistance was dashed as the market dropped to a $6,200 low. The downward move extended to the low of $5956 before the bulls pulled back.
Buyers are making a temporary incursion into the upside which may be short-lived. The current upward move is being repelled at the breakout level of $6,400. It is assumed that if the bears sink Bitcoin below the breakout level of $6,400, the market will fall to a low of $5,500. Besides that, the momentum will extend to a low of $5,000.
The 12-day EMA is acting as resistance to BTC. Presently, Bitcoin is below 80% range of the daily stochastic. This indicates that Bitcoin is in bearish momentum. This is contrary to the current price action which seems to be bullish.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
The failure of the bulls to break the $7,000 overhead resistance has given the bears the advantage to sink Bitcoin. On the downside, Bitcoin will reach a low of $5,500 since the breakout level has been breached. Nonetheless, a rebound at the low of $6,200 will invalidate the earlier downward move.
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.