The world’s oldest cryptocurrency, Bitcoin (BTC), has been ranging for some time because of its inability to break above the $9,200 price level. The market has reached a high of $8,674 as at the time of writing. The upward move is the result of a bounce from the current support.
Today, Bitcoin is rising and probably to retest the $9,200 resistance. At the same time, the daily stochastic is rising and has reached the overbought region of the market. Bitcoin is ranging and as such the prices tend to fall each time the coin reached the overbought condition of the market.
Our expectation is that price will bounce from the current support and break the $9,200 resistance. Then the momentum will extend to the $10,000 price level. Unfortunately, the stochastic has reached the overbought region indicating that the selling pressure will resume. BTC will fall and may continue its fluctuations.
Bitcoin May Face Another Rejection
In the last 24 hours, the 26-day EMA holds as the bulls initiate another upward move to the recent high. If the price bars are above the EMAs, the price tends to rise. The bullish candlestick has to break above the 12-day EMA for a smooth upward movement. The target price is $9,200 resistance.
However, if the bears defend the resistance to its fullest, Bitcoin will fall and continue its range-bound movement. Meanwhile, the Relative Strength Index period 14 is level 60 indicates that price is in the bullish trend zone. That is the upward move is ongoing. The current move can be interrupted if the price turns down and break below the 26-day EMA. This will signal the resumption of selling pressure.
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