While bitcoin price is benefitting from the broad dollar weakness in this morning’s trading, BTCUSD is struggling to gain enough bullish momentum to make it to the $10,000 handle. This is evidenced by the falling trendline which can be seen when you connect the highs of May 7, May 14, and May 19 on the daily time frame. In fact, we can actually see bitcoin price currently testing the falling trendline.
In order for the cryptocurrency to test $10,000.00, BTCUSD must first close above the high of May 30 at $9,758.27.
However, it’s worth pointing out that on the hourly time frame, bitcoin price is already showing signs of weakness. The most recent candle closed as a shooting star. When you enroll to our free forex trading course, you will learn that this is considered as a bearish reversal signal. What makes it relevant is that it formed around BTCUSD’s highs for May 28 to May 30. This then implies that resistance at $9,600.00 may hold. If it does and bitcoin price falls to $9,352.85, a head and shoulders will have formed. Should this happen, we could soon see the cryptocurrency fall even further to $8,702.50 where it bottomed on May 26.