Bitcoin (BTC) price analysis, October 7, 2020. Bitcoin price is range bound between $10,200 and $11,000 after failing to break into the previous highs. The king coin has resumed a downward correction after facing rejection at the $10,800 resistance.
Yesterday, October 6, Bitcoin slumped to $10,550 after retesting the $10,760 high. Immediately, the price corrected upward to reach $10,640. The current upward move failed as BTC resumed a downward move.
There is a fundamental factor affecting BTC prices. One of the factors is the delay in the approval of the second stimulus package for the people of the United States. President Trump has resigned approval until after the conclusion of the 2020 presidential elections. This has resulted in a drop in the BTC price and other mainstream markets. Today, BTC is trading at $10,596 at the time of writing. The price is expected to reach the lower price range of $10,200 before the resumption of the upward move.
BTC has continued a downward move as price breaks below the moving averages. The downward move was made possible because price retested the 21-day SMA. The SMAs are sloping southward indicating the downtrend. However, if the price breaks above the SMAs, it will signal the resumption of the bull market.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7,000, $6,000, $5,000
Bitcoin will further depreciate because of the recent developments. On October 6 downtrend, BTC fell to the low at $10,556 and the retraced candle body tested the 78.6% Fibonacci retracement level. This indicates that the market will fall and reach a low of 1.272 Fibonacci extension level or $10,478.90 low.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.