Bitcoin Showing Weakness after Rejection at the $10,000 Overhead Resistance

Bitcoin's recent rejection from the $10,000 overhead resistance appears to trigger a downward move of the king coin.

The initial price action above $9,400 and the subsequent struggle to break above $9,500 has resulted in a bearish reaction. For the past month, when price holds between $9,000 and $9,300, the upside range trading will resume. This enables price to fluctuate between $9,300 and $9,800 to retest the $10,000 overhead resistance.

Presently, the market is said to be on a downward move. Unfortunately, if the bears break below the $9,000 support, it may signal the resumption of the downtrend. The next support after breaking the $9,000 support is $8,800. This is the level where buyers break to enter the $9,000 region. The king coin will continue to fall to $8,500 and $8,200 if the selling pressure persists.

Bitcoin indicator reading 

Regrettably, the bears have broken below the support line of the ascending channel. The implication is that the downtrend may continue. The upside range will be terminated if the market falls below $9,000. BTC has also fallen to level 45 of the Relative Strength Index period 14. It implies that the coin is in the downtrend zone and below the centerline 50. 

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 been making a downward move, barely after buyers fail to push price above $9,500 resistance. Technically, Bitcoin's weakness appears to come from its rejection from the $10,000 overhead resistance. After the rejection, it fell to $9,084 before correcting upward. However, the downtrend has resumed as the market attempts to retest the previous low.

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.