The uptrend on bitcoin price has remained intact for the past few trading days. This is made evident when you connect the lows of March 12, March 16, April 16, April 20, and May 24. BTCUSD can be seen trading above the trendline support. Additionally, the cryptocurrency found support at the 61.8% Fib level at $9,365.50 when you draw the Fibonacci retracement tool from the low of May 24 to the high of June 1.
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On the hourly time frame, this bullishness is further affirmed by what looks like a bullish flag chart pattern. This is characterized by a consolidation preceded by a sharp rise. When you enroll in our free forex trading course, you will learn that this is considered as a bullish continuation pattern. A close above yesterday’s high at $9,888.00 could mean that BTCUSD may soon rally to its recent highs at $10,429.26.
On the other hand, be wary of a strong bearish close below the consolidation at $9,715.50. This would invalidate the bullish flag chart pattern and could hint that there are still sellers in the market. Should this happen, we may soon see BTCUSD re-test the rising trendline at $9,382.50. If support does not hold, we may even see bitcoin price fall to its May 26 lows at $8,705.00.
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