Today, Bitcoin is now trading and consolidating above $7,800 after a disappointing fall from the $9,200 resistance. The bulls have earlier attempted to breach the resistance at $9,200 before they were repelled. Now from the current support, will BTC continue its downward move? Yes, based on the previous price action. Nevertheless, at this moment, it is unlikely because BTC is already in the oversold region of the market.
In the oversold region, buyers are expected to emerge to push BTC upward. Sellers are not there to sink Bitcoin because selling has been overdone. In other words, $7,800 support may hold if possible. Meanwhile, the bulls are attempting to defend the $7,800 support level, if the bulls are successful, a rebound may occur. This will catapult BTC to reach a high of $8,400. At that level, BTC may face stiff resistance and if it turns away from the resistance, the bears will sink the price to $7,000 low.
Bitcoin is still in the oversold region below the 20% range of the daily stochastic. As BTC is in the oversold region buyers are expected to appear to push the coin upward. Sellers are no longer on hand to push the coin upward.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
Bitcoin is nearing the point of another breakdown or breakout. The current support above $7,800 has been holding for the past three days. The next resistance if a breakout occurs is $8,400. Conversely, the next support level, if a breakdown occurs is $7,000. Nevertheless, a breakdown will arise when the bulls face major resistance.
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.