Bitcoin Consolidates as Bulls and Bears Tussles Above $9,300 Support - OhNo "WTF" Crypto

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Bitcoin Consolidates as Bulls and Bears Tussles Above $9,300 Support

#OhNoCrypto

Jun 03, 2020 at 11:00 //

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Bitcoin has a breakdown after smashing the $10,000 resistance

Surprisingly, Bitcoin had a sudden breakdown after smashing the $10,000 overhead resistance. Buyers have already pushed Bitcoin to a high of $10,398 but the uptrend could not continue because the market reached an overbought region.

Price retracement was to reach the low of $9,950 of $10,000 before the resumption of a fresh uptrend. The retracement was done as price found support above $10,000. However, after a few hours of consolidation, a breakdown occurred and the price fell to $9,200 low but a correction was made upward. 

The upward correction was short-lived as Bitcoin is still under threat of further downward move. The $9,300 support zone has been an important zone as the price fluctuates between $9,300 and $9,800 in May. However, if the downward move exceeds below $9,300, Bitcoin may encounter a decline. Initial support will be at the $9,000, thereafter the decline will extend to $8,800, $8,500, and $8,200. Meanwhile, the price may continue its downward move.  

Bitcoin indicator reading 

Bitcoin is on a downward move after the breakdown. BTC is below the 80% range of the daily stochastic, indicating bearish momentum. Despite the downtrend,  price is above the EMAs. However, if the bears break below the EMAs, the downtrend will resume.

BTC-CoinIdol_(16).png

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 is in a deadlock as the upside range between $9,300 and $9,800 is under threat. The upside range will be invalidated if the bears break below $9,300 support. Nonetheless, if the $9,300 support holds there is the possibility of retesting the $10,000 overhead resistance.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.



OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow