Bitcoin Holds Above $9,200, Likely to Move Up

The bulls and bears are at the moment undecided about the direction of price. The market has remained the same above $9,200 since January 28. From the price action, BTC fluctuates between $9,200 and $9,600. The price action is represented with small body candlesticks like Doji and Spinning tops. These candlesticks describe the indecision between buyers and sellers about the direction of price.

Hopefully, a price breakout or breakdown is imminent as the market continues its fluctuations on a tight range. The odds are in the favor of the bulls, because a breakout may be in line with the prevailing trend. Bitcoin will rally above $10,300 once a breakout occurs at the current price level. Conversely, it is unlikely for the coin to have a breakdown. Such a breakdown will result in the coin to drop to $8,800. This will only produce disaffection among market sentiment.

Bitcoin Indicator Reading 

Bitcoin is trading above 80% of the daily stochastic range. This explains that Bitcoin is in the overbought region of the market. In such a market condition, the bulls will not be available to push the Bitcoin upward. Therefore the coin stands the risk of falling as sellers will be on hand to push the coin downward.

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?

Bitcoin is fluctuating as the price movement becomes insignificant. For about a week, the upward movement has given way to a sideways move. It is uncertain how long the sideways move will be. There is the certainty of a price breakout or breakdown at the end of the range-bound movement. Bitcoin has neither traded above $9,500 nor traded below $9,200 in the last one week.

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.