Bitcoin Breakout Engages Resistance at $9,800, Unable to Build Strength on Market Surge

On Monday, June 22, Bitcoin rebounded above $9,200 as price retested the $9,800 resistance. The king coin is range-bound below the $9,800 resistance for the past two days. Perhaps, BTC will encounter another breakout if the range-bound movement continues below the $9,800.  Alternatively, BTC will resume a downward move or an outright fall to the lower region.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart

On the 4-hour chart, after the recovery on June 11, BTC has been consolidating above $9,200 and $9,400. The bulls attempted to push the price above $9,500 but were repelled. However, on June 22, the downtrend line was broken by price and the market continued its upward move.

On the upside, when price breaks and closes above a trend line, it accelerates the price movement. Buyers were able to push the price to $9,800 resistance but unable to break it. Today the coin has been repelled as the market dropped to the lower region of $9,000. The crypto is below 40% range of the daily stochastic. It indicates that the coin is in bearish momentum. 

Bitcoin is range-bound below $9,800

In the last 48 hours, Bitcoin has been trading below the $9,800 resistance. However, BTC retested the $9,800 resistance after a breakout. The price broke the $9,500 and $9,680 resistance but it was resisted at the $9,800. The coin retraced to $9,600 and resumed a sideways move below the resistance. Nonetheless, in the upside range trading, the price fluctuates between $9,300 and $9,800 to retest the $10,000 overhead resistance. On the upside, if the bulls break the $9,800 resistance, it is possible to retest the overhead resistance.

BTC/USD -Daily Chart

BTC/USD -Daily Chart

Meanwhile, if the bulls fail to break the current resistance at $9,800, the bears will like to sink the coin to the downside. Presently, Bitcoin is facing a bearish reaction as the market falls to the lower region of $9,000. However, if the market retraces to $9,300 and holds, the upside range trading will resume. Nevertheless, if the lower region of $9,000 fails to hold, the downtrend may resume.

On the downside, once the $9,080 support is broken, BTC will face a larger decline. Bitcoin has fallen to level 48 of the Relative Strength Index period 14. The king coin is in the downtrend zone and likely to fall.

NordFX