Today, Bitcoin (BTC) is trading below the resistance at $7,600. This is the fallout of price inability to breach the first resistance. In retrospect, the cryptocurrency had been relatively stable as the price fluctuates between $7,800 and $6,600 since November 25, 2019.
On November 29, the bulls fail in an attempt to break the resistance at $7,800. Subsequent attempts were resisted at a $7,600 price level. The $7,600 resistance has proven to be strong as it has repelled the bulls on more than three occasions.
Nonetheless, the bears may take undue advantage if the bulls fail to break the resistance levels. On January 2, the bears took the price to the low of $7,000 but the bulls defended the support and pulled back. However, if the bears had broken the $7,000 support, Bitcoin would have dropped to the low of $6,400.
Bitcoin Targets $7,800; Price Could Rally Above $9,200
On the upside, it is expected that Bitcoin will move above $9,200 if the bulls break the $7,800 resistance. Meanwhile, the Relative Strength Index (RSI) period 14, level 64 indicates that price is in the bullish trend zone. We are expecting the price to rise.
Bitcoin had been trading in a bullish falling wedge since June 2019. The price has broken above 12-day EMA and the 26-day EMA and it is heading toward the $7,800 resistance. This is a positive move if the price closes above the EMAs, Bitcoin will continue its upward move. Expectantly, we await the price to break the $7,600 and $7,800 resistance levels and the coin will rally above the downtrend line. Meanwhile, Bitcoin is trading above the 50% range of the daily stochastic. This indicates that the price is in a bullish momentum.