Bitcoin Recovers but Faces an Uphill Task as it Makes Fragile Steps to the Upside Range Trading

Following the rejection at the $9,800 resistance on June 22, the downtrend persisted as Bitcoin plunged to $8,855 low. Bitcoin bulls responded immediately to correct upward as BTC reached a high of $9,200. Incidentally, this is the second time traders will be buying the dips each time Bitcoin falls below $9,000.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart

On June 15, BTC encountered a breakdown as it fell to $8,914 low. The coin recovered after rebounding above the current support. Bitcoin rose to $9,500 high but could not break the resistance. The coin rebounded again as the bulls broke the resistance and retested the $9,800 resistance zone but could not penetrate the downtrend line.

This shows that the cryptocurrency lacks strength and will be unable to move to the $10,000 overhead resistance. The price will continue its uptrend if it breaks and closes above the downtrend line. Today, the king coin has fallen but it is facing resistance at $9,200 high. The market is above 70% range of daily stochastic. It indicates that the coin is in a bearish momentum. It is also approaching the overbought region of the market.

Bitcoin recovers as bulls buy the dips

On June 15, Bitcoin dropped to $8,914 low after the bulls failed to scale above the $10,000 overhead resistance. Traders buy the dips to push the coin to $9,400 high. Bitcoin’s strongest supports are the $9,300 and $9,400. However, buyers were facing difficulty in clearing the $9,500 and $9,680 resistance. After a week of consolidation below the resistance, the price rebounded to break $9,500 and $9,680 resistance. The momentum extended and retested the $9,800 resistance. The king coin was resisted as the price fell above $9,600.

BTC/USD - Daily Chart

BTC/USD – Daily Chart

After two days of consolidation above $9,600, BTC encountered another breakdown. This time the market dropped to the $8855 low. As usual, the bulls ‘buy the dips’. Today, the coin has risen to $9,200 high but it is retracing at the moment. Nonetheless, the failure of bears to continue with the downtrend indicates that there is a lack of sellers at the lower level of price.

Nevertheless, Bitcoin would have depreciated if the bears had succeeded in pushing the coin below $8,800. The crypto would have fallen to the lows of either $7,400 or $6,800. The crypto has fallen to level 44 of the Relative Strength Index period 14. The king coin is still in the downtrend zone and below the centerline 50.