Bitcoin Retraces after Failed Attempt at $10,400 Overhead Resistance

Regrettably, Bitcoin has lost more ground after failing to break the resistance at $10,400. The bulls are battling to defend the $9,800 as the support cracks. On February 11, the bulls defended the $9,800 support and price rebounded to reach the overhead resistance. At the moment, the price has failed to rebound at the low of $9,800; rather the price seems to fluctuate and may resume selling.

It is like the price action of October 2019 is going to take the shape of the current price action. In October 2019, BTC has a price rally and the price spike reached above $10,000. The bulls could not sustain the upward movement as the price fell and consolidated below the $10,000 resistance. After consolidation, the market dropped to a low of $7,000. Today, the price action may not be different as BTC is yet to trade or rally above $10,000 since August 2019.

Bitcoin Indicator Reading 

Bitcoin has fallen to level 55 of the RSI period 14. On February 8, Bitcoin was in the overbought region, and buyers were not on hand to push BTC upward. Rather sellers were generated in the overbought region to push BTC downward. Presently, BTC is still in the uptrend zone and above the centerline 50. Meanwhile, Bitcoin is in the ascending price channel. As long as Bitcoin is in the ascending channel, the upward move is ongoing.

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 has fallen to a low of $9,800 as the bulls fail to break the overhead resistance. The price is fluctuating below and above $9,800. A break below the support will result in the coin reaching the low of $9,200. Likewise, a rebound will catapult the coin to the overhead 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.