Bitcoin remains in the uptrend zone despite its recent fall. In the last 48 hours, it dropped again to $8,200 low and moved up.
The recent fall was caused by low volatility as a result of the just concluded Bitcoin halving. It is worth remembering that in early March at $4607 low, Bitcoin rose to $10,045 because of the ecstasy of the upcoming Bitcoin halving. BTC was characterized by high volatility.
Today, the volatility has dropped sharply after the Bitcoin halving. Meanwhile, in the last three days, buyers have been struggling to break above the $9,100 resistance. At first, the bulls were repelled after reaching a high of $9,142. Today, buyers are set to retest the resistance level. The bottom line is that if buyers are successful above the resistance, a retest of $9,500 resistance and subsequent rise is likely. However, if buyers find penetration difficult at the resistance, a possible downtrend is unavoidable..
Bitcoin Indicator Reading
After the breakdown on May 10, BTC is beneath the 50% range of the daily stochastic. It indicates a further downward move, although, the indicator bands are making a U-turn. More so, the price action is indicating a bullish signal.
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?
As earlier indicated, Bitcoin is still in the uptrend zone. Bitcoin has recovered twice after the bears push the price towards the support at $8,000. The uptrend will change to a downtrend if the $8,000 support cracks. BTC will drop to $7,500 and subsequently the downtrend will resume.
Disclaimer. This analysis and forecast are the personal opinions of the author are 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.