Recently, the bulls overcome the resistance at $9,200 after the coin rebounded at the low of $8,200. The upward move was completed as the coin faced another resistance at $9,500. BTC has been ranging between $9,200 and $9,600 for the past one week.
On the 4-hour chart, Bitcoin is trading below $9,600 resistance level. The coin is fluctuating because of difficulty to penetrate the resistance at $9,500. The previous resistance of $9,200 was overcome as Bitcoin bounced from its low to break the resistance level. In the current resistance at $9,500, the market is said to be in a range-bound move. The coin has formed a range because of its inability to break above the current resistance.
Presently, the price bars are above the 12- day EMA and the 26-day EMA ensuring the upward movement of the coin. Conversely, if the coin fluctuates and breaks below the EMAs, BTC may fall and drop above the trend line. If the price holds above the trend line, BTC will bounce and move upward to the previous highs. Meanwhile, the Relative Strength Index (RSI) period 14 level 55 indicates that the coin is in the uptrend zone.
Bitcoin Ranges, Attempts to Breach the Resistance at $9,600
On January 28, the bulls made an upward move to the high of $9,397 and commenced a sideways move below $9,600. On a daily bases, the market is characterized by small body candlesticks like Doji and Spinning tops. These candlesticks describe the indecision between buyers and sellers at the current market price.
As the market continues to range, there is the possibility of a price breakout or breakdown. On the upside, a breakout above $9,600 will propel Bitcoin to rally above $10,300. On the downside, a breakdown below $9,200 will push BTC to the low of $8,800. Meanwhile, BTC is above 80% range in the overbought region of the daily stochastic. This implies that buyers are not on hand to push Bitcoin upward. Rather there are sellers in the region to push the coin downward.
