Bitcoin price has been on a downtrend since early June. However, with the recent price action on BTCUSD, it’s probable that the cryptocurrency has broken its downtrend. Does this mean we will soon see the cryptocurrency take another shot at $10,000.00?
Bitcoin Price, Daily Chart
On the daily time frame, it can be seen that bitcoin price has recently been making lower highs. In fact, when you connect the recent highs of the cryptocurrency, you will see that bitcoin price had been limited by resistance on the falling trendline. That is, until yesterday. BTCUSD closed with a 1.94% gain and also looks to be trading above the trendline. When you enroll in our free forex trading course, you will learn that a trendline break is often considered as a bullish indicator. This could suggest that there are buyers in the market who could push bitcoin price to near-term resistance at $9,798.76 where it topped on June 22. If resistance at this level does not hold, the next ceiling could be at $10,429.26 where it peaked on June 1.
A closer look at the 1-hour time frame would show that bitcoin price could pull back some of its gains and retest the previous trendline for support. BTCUSD could trade lower to $9,341.50 where the trendline coincides with the area between the 50% and 61.8% Fib levels (when you draw the Fibonacci retracement tool from the low of July 7 to the high of July 8). If support at this price does not hold, bitcoin price could fall lower to $9,223.67 where it bottomed last July 7 and also test the 100 SMA for support.
Potential Retest of Trendline?