Bitcoin Price Clings to Trendline Support as It Eyes a Retest of $10,000.00

The $10,000.00 psychological handle remains to be elusive for bitcoin price. In the beginning of the month, BTCUSD traded to a four-month high at $10,429.26. However, a week into trading for June, the cryptocurrency has been unable to attract enough bids to once again test the major psychological level. Does this mean that the bullish momentum on bitcoin price is running out or will we soon see the cryptocurrency tap new multi-month highs?

On the daily time frame, it can be seen that the uptrend on BTCUSD is still intact. This is evidenced by the rising trendline (from connecting the lows of March 13, March 16, April 16, April 20, May 25, June 2, and June 7). The last few trading days have resulted to reversal candles. Consequently, these could mean that we may soon see bitcoin price resume its rally beyond $10,000.00. 

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It’s also worth noting that on the 4-hour time frame, BTCUSD can be seen testing the 38.2% and 50% Fib levels (when drawing the Fibonacci retracement tool from the low of May 26 to the high of June 1). Should there be enough buyers in the market, we could soon once again see bitcoin price rally above $10,400.00. If resistance at previous highs does not hold, the next ceiling could be at $13,880.00 where BTCUSD topped on June 26, 2019.

On the other hand, be wary of a strong close below the low of June 7 at $9,356.00. A close below this price could invalidate support at the rising trendline and hint at more downside potential. It could then mean that bitcoin price is on its way to near-term support at $8,669.00. If support there does not hold, the next floor could be at $6,472.67 where BTCUSD bottomed on April 16.

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