Bitcoin (BTC) Recovery Stalls at $9.4k but Technical Weakness Remains

Presently, Bitcoin bulls are yet to clear the $9,500 resistance zone and have access to the upside range trading. Since June 11, BTC has been consolidating in the $9,400 region. The bottom line is that inability to clear the $9,500 resistance will attract further selling.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart

BTC is fluctuating above $9,400 at the time of writing. The support level of $9,050-$9,200 is holding which is crucial to the upside range trading. The other is for buyers to clear the $9,500 and $9,680 resistance levels. When these resistances are cleared the upside range trading between $9,300 and $9,800 will begin. Once the bulls break the $9,800 and $9,880 resistances, a renewed test on $10,000 overhead resistance will resume.

On the other hand, Bitcoin may face rejection at the $9,600 and $9,500 resistances. At the same time, if the support levels between $9.050 and $9,300 are broken by the bears, then BTC will be on a downward momentum. The rejection and losing support levels in the $9,000 region is a signal for a downtrend. In the meantime, buyers are still struggling to clear the $9,500 and $9,680 resistance zone. The coin is presently trading above 80% range of the daily stochastic. That means BTC is in the overbought region of the market. Sellers may appear to push BTC prices down.

Bitcoin price bars are below 12-day and 26-day EMAs

On the daily chart, BTC has been trading in the bearish trend zone soon after the June 11 breakdown. For the past week, buyers have failed to push the price above the EMAs.

BTC/USD - Daily Chart

BTC/USD – Daily Chart

The implication is that the bears may resume the downward move. On the upside, if the bulls pushed the price above the EMAs, Bitcoin will tend to rise. At the same time, buyers would have cleared the $9,500 and $9,680 resistance levels. This will pave the way for the upside range trading to resume. However, if the bulls lose possession of the current support the bears may take possession of price. Bitcoin has fallen to level 51 of the Relative Strength index period 14. The king coin is still in the uptrend zone and likely to rise.

NordFX