Bitcoin is stalled below $9,200 resistance as price corrected upward from the recent breakdown. In the meantime, the price fluctuates between $9,000 and $9,200. A break above $9,200 will signal the resumption of upside range trading. Otherwise, BTC will encounter another breakdown.
For the past four days, after buying from the dips, the bulls have been making frantic efforts to break above the $9,200 resistance. Buyers were repelled twice as they attempted to break the current resistance. A break above $9,200 will accelerate price movement to the previous high of $9,300. Perhaps the upside range trading will commence. In the upside range trading, the price fluctuates between $9,300 and $9,800 to retest the $10,000 overhead resistance. This has been the market scenario since May. Nonetheless, if the bulls fail to break the resistance at $9,200, there is a tendency for price to turn a downward movement.
In other words, if the $9,000- $9,200 support fails to hold the upside range trading will not be possible. Instead, a downtrend will follow. It is anticipated that if the crypto turns down from the $9,200 resistance, the bears will like to sink the coin below the $9,050 support.
The bearish momentum will accelerate price to $8,825 low if the bears are successful. The momentum will extend to minor support at $8,600. However, if this level is also broken, the coin will slump to $8,130 low. Presently, Bitcoin is still consolidating between $9,000 and $9,200. The king coin is below 80% range of the daily stochastic. It indicates that the coin is in a bearish momentum.
Bitcoin consolidates sideways below $9,200 resistance
On the daily chart, the price is consolidating below the 12-day EMA and the 26-day EMA. This is immediately after the recent breakdown. The price is below the EMAs which suggests a further downward movement of prices. Meanwhile, price consolidation is characterized by small body candlesticks like Doji and Spinning tops.
These indicate that buyers and sellers are undecided about the direction of the market. In the meantime, price is still fluctuating below the current resistance. There is a likelihood of a breakdown or a breakout in a couple of days to come. The crypto has fallen to level 45 of the Relative Strength Index period 14. The king coin is still in the downtrend zone and below the centerline 50.
This article is Originally posted on CoinCentral.com
Author: Mustapha Azeez