After the recent crash on September 3, Bitcoin has been fluctuating above the psychological support level of $10,000. The bears failed to break the current support convincingly on September 3 and 5 as price corrected upward.
Today, BTC is trading above $10,170 at the time of writing. As the market continues its fluctuation, a sharp rebound above $10,000 will propel price to break the $10,600 resistance.
And if the momentum extends above $11,000, the upside momentum will resume. However, if the bullish scenario fails to hold, sellers may attempt to break below the $10,000 support. BTC will slump to $9,800 if the current support is broken. Meanwhile, sellers are making frantic efforts as they come close to breaking the current support. However, if the bearish scenario fails, BTC will be range-bound between $10,000 and $10,600.
Bitcoin indicator reading
BTC price has continued to fall because the price is below the EMAs. The market is vulnerable as long as the price is below the EMAs. BTC is below the 20% range of the daily stochastic. The king coin has fallen to the oversold region of the market. The implication is that buyers will emerge to push prices upward.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
What is the next direction for BTC/USD?
Bitcoin risks further decline if the psychological price of $10,000 is breached. According to the Fibonacci tool, the last retraced candle body tested the 50% Fibonacci retracement level. This gives us the clue that BTC will fall to 2.0 extension or $9,800 if the current support cracks.
Disclaimer. This analysis and forecast are the personal opinions of the author and not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
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