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After a sharp fall on August 21st, we have finally reached our support line. After a bounce off the support line, we are starting to see some nice green candles which may indicate a new trend forming.
If the price doesn't break through the support of about ~$9,700 then we could expect a new upward trend to form heading to the next resistance of ~$10,500.
The stochastic oscillator is showing that we are in the oversold range, but there is some steady momentum heading out of that range. With the Stoch showing a recently recorded higher low while the price of Bitcoin recorded a lower low, this could indicate a bullish divergence and therefore a price increase.
What To Consider
Be cautious when placing an order because if the price breaks below ~$9,700 we could be heading to the next support of ~$9,400. If the price is holding above the support of ~$9,700 we could expect an increase to the next resistance of ~$10,500.
Active Trade Signal
- Buy at $9,900
- Stop-loss at $9,700
- Take-profit at $10,400
- Risk/reward ratio: 1:2 (attractive)
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