Bitcoin Amassing Strong Support; Looks Set for an Eventual Retest of the Regional Lows

Since May 14, Bitcoin has consistently traded above $9,000 support. Nonetheless, as long as $9,200 support holds, BTC will continue to retest the $10,000 overhead resistance. Analysts are of the view that the overhead resistance will be weakened after several retests at it.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart

On May 14, after a rebound, BTC remained stable above $9,000 support. However, the support at $9,200 has been the major support as the price fluctuates between the resistance zone and the support. On the 4-hour chart, the bulls have a faster rate of retest than the higher time frame. The price has retested the resistance zone at six different times. Certainly, these several retests should have bought positive results.

As price fluctuates, a breakout is possible at the resistance zone. Assuming, a breakout occurs, this will propel price to rally above $10,000 resistance. Subsequently, the next support at $11,400 is achievable. Conversely, if the bulls fail to achieve a rebound in the consolidation area or breakout at the resistance zone, a downtrend is likely. BTC is below 80% range of the daily stochastic. It indicates that the king coin is in a bearish momentum.

Downwards correction in sight as a bearish double top forms

On the daily chart, the bulls made two consecutive appearances to retest the $10,000 resistance. On May 7, the bulls pushed BTC to $10,045 high but faced stiff resistance. BTC dropped to $8,200 low. Buyers initiated a fresh upward move as they push the price to $9,938 high on May 14. Sellers emerged to push the price to $9,130 low.

BTC/USD - Daily Chart

BTC/USD – Daily Chart

The two consecutive times with moderate decline and two highs are presumed to be a bearish double top. Since the decline, BTC has been stable above $9,000 support. On the upside, if the bulls fail to break above the overhead resistance, a downward correction will be unavoidable. Meanwhile, BTC is at level 62 of the daily Relative Strength Index period 14. This implies that the king coin is in the uptrend zone and the bulls are in control of the market.

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