For over a week, Bitcoin has been trading in the lower region of $9,000 after recovering from an earlier breakdown. Besides, the bulls were unable to break the resistance at $9,500 and $9,680. Generally, the king coin has been in sideways trading for over a month due to the inability of buyers to break the $10,000 and $10,500 multi-year resistance level.
Bitcoin has earlier survived an earlier breakdown as bulls buy from the dips to push BTC above the $9,400 support. Since then the crypto has been consolidating above $9,400 for the past seven days. Several times the bears have pushed the price to $9,200 low.
At other times, the bulls will pull above $9,400. Occasionally, attempts have been made by buyers to push above $9,500 and $9,600 high but they faced stiff resistance. Analysts believe that as long as the $9,000- $9,300 support holds, the upside range trading is possible. The bulls are likely to break the $10,000 and $10,500 resistance. Besides, if the current consolidation persists, a breakout is imminent where Bitcoin is likely to reach the $14,000 high.
Conversely, if the $9,000- $9,200 support fails to hold, there is a tendency for BTC to resume a downward move. The first major support will be at $9,080 if the coin resumes a downward move. The king coin will face a larger decline if the $9,080 support is broken.
However, buyers may step in, if the market drops to $8,800 low. However, the downtrend will become worse, if the bulls lose this price level. Bitcoin is trading above 80% range of the daily stochastic. The stochastic is approaching the overbought region of the market. Sellers may likely emerge.
Possible breakout on the downtrend line will signal the resumption of uptrend
On the daily chart, the bulls have made several attempts to break the downtrend line. Buyers have been repelled on three occasions while attempting to break above the downtrend line.
Bitcoin will resume an upward move if price breaks and closes above the downtrend line. The momentum will extend to break the $9,600 and $9,800 resistances. Possibly, a retest of the $10,000 resistance is likely. Bitcoin has risen to level 51 of the Relative Strength Index period 14. The leading cryptocurrency is still in the uptrend zone and likely to rise.
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