Breakdown

The bears have successfully defended the resistance levels, including $9,800, as the market drops to an $8,600 low. Further downward move or an upward move has been put on hold as Bitcoin resumes consolidation. The bears have not been able to push below $8,400. In the same vein, the bulls have not been able to push above $8,800. In other words, Bitcoin fluctuates between $8,400 and $8,800.

Today, Bitcoin is currently facing price rejection at the $10,000 resistance. Bitcoin has a price breakdown that resulted in the $9,290 low on February 19. The bulls embarked on another move to revisit or retest the $10,400 overhead resistance. The upward move was short-lived as the bulls were repelled at the $10,000 minor resistance.

After its impressive runs, Ethereum forms a range at the top of the chart. Ether fluctuates between $238 and $288 as indicated by the blue horizontal lines. The range that was formed included two tops.

Yesterday, the bulls failed to push the price above the minor resistance of $10,200. The resulting effect on Bitcoin was another downward move. Just 48 hours ago, BTC survived an earlier downward move where it failed to break above $10,400 overhead resistance. The bears succeeded in breaching the support levels of $10,200 and $9,800 but were stopped at $9,600.

The bulls and bears are at the moment undecided about the direction of price. The market has remained the same above $9,200 since January 28. From the price action, BTC fluctuates between $9,200 and $9,600. The price action is represented with small body candlesticks like Doji and Spinning tops. These candlesticks describe the indecision between buyers and sellers about the direction of price.

Unarguably, Bitcoin Cash is out of the downtrend zone as the bulls break key resistance levels. Especially, the bulls broke the $360 resistance which had earlier remained unbroken since August 2019. Earlier on, BCH was faced with price rejection at the $400 on January 18. The resultant breakdown lasted until the low of $300 was reached.

In the last 48 hours, Ethereum has been on a downward move, but within a confined range of $160 and $173. Today, the price reaches a low of $157 and it is making an upward move to reach a high of $173.

On January 19, the bull’s inability to break above the $180 resistance level compelled Ethereum to a range-bound movement. Ether is on a tight range between $160 and $170. Incidentally, the continual ranging will lead to a price breakout or breakdown. Now if the price breaks the $170 resistance level and the bulls are successful, the coin will reach a high of $200.

Bitcoin has been ranging over $8,600 for the past four days. The consolidation is ongoing after a slight upward movement. Presently, the upward move has been scuttled at $9,200. The bulls could not sustain the price above $9,000 because of the presence of more active sellers at a higher price level. In retrospect, the bull market was also foiled at $10,480 in October because of the presence of active sellers.