Bitcoin Struggles Below $7,500, a Rally above $8,000 Possible
Apr 08, 2020 at 13:42 //
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Undoubtedly, the breaking of the $7,000 overhead resistance is a foregone conclusion. The bulls successfully broke the $7,000 resistance and the resistance line of the descending channel. A further push away from the resistance line is necessary to avoid price sliding back below the line.
Unfortunately, BTC's upward move is facing another resistance as it is trapped below $7,353. The market is currently retesting a historical price of December and January. A successful break above $7,353 will propel BTC to rally above $8,000. Conversely, if the bulls fail to break above the resistance, the price will fall and find support above $6,800. Alternatively, the price will continue to consolidate below $7,353.
Bitcoin Indicator Reading
In the meantime, the resistance line has been broken but the upward move has been hampered given the current resistance. Bitcoin is above 80% range of the daily stochastic. This implies that BTC has reached the overbought region of the market. In the overbought region, sellers may emerge to push prices downward. At other times, the overbought condition may remain without sellers emerging to push price downward.
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 resumed an upward move. Bitcoin is expected to rally above $8,000 if the bulls sustain the price above $7,353 resistance. Possibly, the momentum can extend to $9,000. However, consolidation below the resistance will be a possible alternative if the bulls fail to sustain price or break the resistance level.
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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow