BTCUSD Medium-term Trend: Bearish
- Resistance levels: $7,000, $7,200, $7,400
- Support levels: $3,500, $3,300, $3,100
Yesterday, the BTCUSD pair was in the bearish trend zone as the bulls made a bullish movement. The crypto's price is still below the 12-day EMA and the 26-day EMA which indicates that Bitcoin is likely to fall. The 12-day EMA is resisting price movement to the upside. If the price breaks above the EMAs, the crypto will face resistance at the $3,800.
If the crypto's price falls, it will find support at the $3,500 price level. On the other hand, if the $3,500 price level is broken, the crypto will revisit its previous low of $3,200 price level. Meanwhile, the stochastic bands are in the oversold region and below the 25% range which indicates that the crypto is a strong bearish momentum and a sell signal.
BTC/USD Short-term Trend: Ranging
On the 4-hour chart, the price of Bitcoin is in a range bound movement. On January 10, the crypto's price fell to the $3,700 price level and commenced a range bound movement. On January 13, the crypto's price further depreciated to the low of $3,570 to establish the support level. While on January 14, the bulls break the 12-day EMA, the 26-day EMA and reached the $3.799 price level to establish the resistance level of $3,800 price level.
The price of Bitcoin has been trading in this range for the last week. Traders can trade the range bound movement when the price tests the key levels. Meanwhile, the stochastic is below the 75% range which indicates that the BTC price is in a bullish momentum and a buy signal.
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