For the past four days, Bitcoin has remained above $9,200 as a result of its weakness to resume upside range trading. In recent times, its volatility has dropped; this in effect has contributed to a massive surge of the altcoins in the last two months. Whenever Bitcoin is calm the altcoins will rise.
Surprisingly, despite its low volatility and weakness, the $9,000 and $9,200 support has been holding consistently. Analysts believe that if the current support level holds, the upside range trading will continue. Besides, Bitcoin will continue to trade sideways between $9,000 and $10,000. For the past four days, the price movement has been stagnant. The price merely hovers above $9,200. The bulls have earlier made three unsuccessful attempts to break into the $9,300 region. The price is confined between $9,200 and $9,300. On July 8, a breakout occurred that broke the $9,300 resistance. The momentum could not be sustained as the price was repelled at the $9,500 resistance.
Nonetheless, if buyers break the resistance at $9,300 and the momentum is sustained, a rally above $9,500 is expected. Possibly, the upside range of trading will resume between $9,300 and $9,800. When the bulls push BTC above $9,800 resistance, there is a likelihood of retesting the $10,000 and $10,500 resistance. A break above $10,500 will propel the price to reach the $11,500 high.
On the other hand, if the bulls fail to break the $9,300 resistance, the king coin will continue its sideways movement until a breakout occurs. Bitcoin is at level 50 of the daily Relative Strength Index period 14. The RSI is at the midpoint which indicates a balance between supply and demand.
Range-bound between $9,000 and $9,500 price levels
On the daily chart, the king coin has been trapped between $9,000 and $9,500 for over two weeks. Bitcoin has continued to consolidate sideways as the $9,000 and $9,200 support holds.
The bears have broken the $9,000 support on three occasions but price corrected upward and sustained above the current support. Because of the current weakness of Bitcoin, buyers have only attempted to break the $9,500 resistance once and were repelled. On the upside, a break out of this tight consolidation will accelerate price movement into the previous highs. Nevertheless, BTC is above 40 % range of daily stochastic. It indicates that the market is in bullish momentum.
Author: Mustapha Azeez