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Bitcoin Fluctuates in a Range as Larger Downtrend is Imminent Against Significant Selloff

Since May 24, after the bearish impulse, BTC slumped again to $8,600 low and resumed upside correction. After the correction, buyers were repelled at the $9,000 resistance. Bitcoin has resumed fluctuation between $8,600 and $9,100.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart

The king coin has been trading in a tight range between $8,600 and $9,000 for the past four days. The bulls have retested the $9,000 resistance twice, while the bears have also visited the $8,600 support twice. The price is now in the middle structure of the range-bound zone. On the upside, if the bulls fail to break the $9,000 resistance or the downtrend line, the cryptocurrency will slide down. On the downside, a break below $8,600 support will accelerate the downward movement.

The decline will continue to the lows of $8,400 and $8,200. A downward move to $8,000 support can propel BTC to rebound or create buying opportunities that will enable the coin to reach its previous highs. Otherwise, a break below $8,000 will signal the resumption of the downtrend. Nonetheless, BTC has fallen to level 43 of the Relative Strength Index period 14. This indicates that the coin is still in the bearish trend zone.

Bulls and bears tussle for price

On the daily chart, after the large bearish candlestick, price has been consolidating above the $8,600 support. The support is characterized by small body candlesticks like Doji and the Spinning tops.

BTC/USD - Daily Chart

BTC/USD – Daily Chart

The candlestick represents the bulls and bears who are undecided about the direction of price movement. The market makers have reached the equilibrium price of no loss or gain. Bitcoin is below 40% range of the daily stochastic indicating that the coin is in a bearish momentum.

 

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