The last time Bitcoin bulls retested the $9,800 resistance was on June 22. Consequently, BTC plunged to $8,855 as a result of the bull’s failure to break the $9,800 resistance. Each time the king coin plunges to its low, it will result in dip buyers stepping in to push BTC upward. This is the Genesis of the continuous consolidation above $9,200.
Since June 27, Bitcoin has been range-bound between $9,000 and $9,500 given the recent developments and low volatility. From the 4-hour chart, the crypto has been trading in the current price range as the $9,000 and $9,200 support continued to hold since May.
Unfortunately, buyers have not been able to clear the $9,300 and $9,400 resistance. Each time, the bulls attempt to breach the resistance at recent highs; the coin will decline to $9,200 or $9,000. Thereafter the market will resume consolidation. However, if buyers can clear the $9,400 resistance, the bullish scenario will ensue.
That is the upside range trading between $9,300 and $9,800 will resume retesting the $10,000 overhead resistance. However, because of low volatility, this is farfetched. Instead, BTC has continued to consolidate above $9,200. Conversely, if the $9,000 and $9,200 support fails to hold, the bearish scenario will follow.
When the $9,000 support cracks, Bitcoin’s first support will be either at $8,800 or $8,900. The downward movement will continue to $8,500. Nonetheless, when $8,500 support cracks, the coin will drop sharply to $8,130 or $8,200 low. Presently, the king coin is consolidating above $9,200 after facing rejection from the recent high. BTC is above 40 % range of daily stochastic. It indicates that the market is in a bullish momentum.
Bitcoin price action remains choppy
On the daily chart, the price action of Bitcoin has continued to be choppy. The resistance and support levels are no longer discernible as BTC reaches a point of trending.
The 12-day EMA and the 26-day EMA are horizontally flat. While the small body candlesticks are below and above the horizontal line. This indicates that neither buyers and nor sellers have the upper hand. On the upside, if price breaks above the $9,200 resistance, the breakout will be powerful. Similarly, a breakdown will cause Bitcoin will drop sharply to the lower region of $8,000. Bitcoin is at level 47 of the daily Relative Strength Index period 14. It indicates that the market is approaching the lower region of $9,000.
Author: Mustapha Azeez