Bitcoin Holds above $8,600, Makes Upside Correction

Since May 24, Bitcoin dropped to $8,669 and resumed fluctuation between $8,600 and $9,000. For the past four days neither the bulls nor the bears have taken advantage of the recent breakdown.

In this current range, if buyers pushed the price above $9,000 and it is sustained, there is a possible retest of the $10,000 overhead resistance. On the other hand, if sellers succeed in breaking below $8,600 support, the selling pressure will resume. 

On a downward move, BTC will find the next support above $8,250. The momentum can also extend to $8,000 support. With this support, BTC can rebound and create buying opportunities to initiate a fresh uptrend. Alternatively, if the $8,000 support cracks, the downtrend will resume. Meanwhile, BTC is still consolidating above $8,600 support.

Bitcoin indicator reading 

Bitcoin is currently below the 40% range of the daily stochastic, indicating a bearish momentum. However, the price action has not been stable as the market continues to fluctuate. There is a possible downward move as the price is below the EMAs.

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 currently trading between the $8,600 and $9,000 price levels. What determines the future price movement is either a breakdown below $8,600 or a breakout above $9,000. At the moment, it favors the bears to have the upper hand as all the indicators are pointing to a downward move of Bitcoin. 

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.