Major Movement Expected as Bitcoin Retests $7600 Demand Zone – Price Analysis

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.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart. Source: TradingView

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.

BTC/USD - Daily Chart

BTC/USD – Daily Chart Source: TradingView

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.

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