Bitcoin Bounces and Pushes Previous Market Structure, Breakout Likely

Bitcoin’s uptrend is intact as the coin continues to consolidate in the lower region of $9,000. Analysts believe that if the $9,000- $9,300 support holds, Bitcoin will rise to retest and possibly break the $10,000 overhead resistance.

Alternatively, if the current consolidation persists, a breakout above the $10,000 resistance is unavoidable. Besides breaking the overhead resistance, Bitcoin will reach a high of $14,000.

For the past few days, the consolidation has intensified. Recently, the bears pushed the coin to $9,200 low. At other times, the bulls will pull above the $9,400 support. It has been the market scenario for sometimes. Nonetheless, the above analysis may be invalidated, if the $9,000- $9,200 support fails to hold. Possibly, Bitcoin will make a sharp decline. At first, it will drop to $9,080, and then it will sink to $8,200 low. The sharp fall becomes necessary because the resistance has been retested severally. Meanwhile, it is still consolidating at the time of writing.  

Bitcoin indicator reading 

Since June, Bitcoin has been on a downward move. The bulls made two attempts at the downtrend line and were repelled. The market is still in consolidation as bulls fail to break the downtrend line. The coin will commence the resumption of uptrend if price breaks and closes above the downtrend line. Bitcoin is presently above the 40% range of the daily stochastic. The stochastic bands are flat as the market continues its consolidation.

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?

Since May 6, the bulls made the first attempt to break the $10,000 overhead resistance. From the price action, BTC has been consolidating between $9,000 and $10,000. Buyers have made several attempts to break the overhead resistance but to no avail. Today, BTC is consolidating in the lower region of $9,000. 

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.