In the past week, Bitcoin (BTC) has been fluctuating between $8,500 and $9,500 after the price spike on April 30. In the last 48 hours, it has been hovering between $8,800 and $9,124. The bulls have been making concerted efforts to break the resistance levels.
BTC/USD – 4 Hour Chart
On the chart, in the lower region of the price range, the bears have visited the support level twice. The bulls have been defending the support levels of $8,400 and $8,600. It is believed that if the bears break the $8,400 support, the downtrend will extend to $7,800.
Similarly, in the upper region, the bulls tested the region on five occasions and have traded above $9,000 resistance to break it. The bulls lack sustaining power to hold on price above the resistance. Yesterday, price retraced to $8,800 support and today’s price is above the $9,000 resistance.
In other words, each time price is above $9,000, the bulls will face selling pressure which will force the price lower. On the upside, it is anticipated that if price retraces and rebounds above $8,800 support, the subsequent breakout will break through the resistances of $9,000 and $9,200.
The resultant bullish momentum will extend to $10,000 resistance. On the downside, if the bears succeed in breaking below $8,400 support, it means the resumption of the downtrend. Meanwhile, BTC has risen to level 60 of the Relative Strength Index. This indicates that the coin is in the uptrend zone and it is likely to rise.
Bitcoin in upward move in the overbought region
BTC/USD – Daily Chart
On the daily chart, Bitcoin has been trading below the resistance line of the ascending channel. On the upside, if the price breaks above the resistance line and closes above it, it indicates the resumption of the uptrend. The $8,800 price level has been strong support where the market has been finding support.
The upward moves have been originating from the support to retest the resistance levels. Bitcoin will rise and resume uptrend if it overcomes the $9,200 resistance. Meanwhile, BTC is still trading in the overbought region, above 80% range of the daily stochastic. This indicates that BTC is in a strong bullish momentum.
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