Bit coin’s upward move has not been smooth because of the resistance levels. It took the bulls five days to break the $8,800 resistance level. The price went up to face another resistance at $9,200.
BTC/USD – 4 Hour Chart. Source: TradingView
The coin has fallen to $8,600 after being resisted at $9,200. The price is fluctuating at a low of $8,600. The upward move is gradually diminishing. The bulls have to take decisive steps and defend the $8,600 support level. The danger is that further selling below the$8,600 will be disastrous. The bulls will lose possession of price if the downward move is allowed to continue.
Meanwhile, the price bars have broken below the EMAs which indicate that selling pressure may resume. On the downside, if the selling pressure resumes and the support line is broken below, the downtrend may resume. Conversely, the price may test the trend line and resume the upward move to retest the $8,800 and $9,200 resistance levels.
Bitcoin Drops to the Low of $8,600 as Bulls and Bears Continue to Tussle for Price
BTC/USD – Daily Chart Source: TradingView
On the daily chart, the market is fluctuating below the $9,000 resistance level. After the large bullish candlestick that was resisted, small indecisive candlesticks were formed below the resistance zone. These small body candlesticks were responsible for range-bound movement.
A larger candlestick has been repelled as the coin makes a downward move. The price has fallen to the support of 12-day EMA. Is the support going to hold or the selling pressure will resume?
If the 12-day EMA support holds, Bitcoin will rise and retest the resistance levels and reach the $10,000 price level. On the downside, if the support fails to hold, the price will break below the EMAs, which will signal the resumption of the downtrend.
From the stochastic indicator, the market is trading in the overbought region of the daily stochastic. This implies that there is a likelihood of sellers at the overbought region to push the price downward. Any further fall will compel Bitcoin to the low of $8,400.