Bitcoin Price Forms Double Bottom But Faces Critical Resistance

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Bitcoin price had a strong bullish performance in yesterday’s trading. BTCUSD closed with a 2.99% profit at $9,348.22. Technicals on the 4-hour time frame suggest that the cryptocurrency is at a crossroads. Can it overcome a key resistance level around $9,300.00?

Looking at the 4-hour chart, it can be seen that bitcoin price is currently testing a confluence of resistance around $9,370.00. For one, this price corresponds to the 200 SMA. It also aligns nicely with the falling trendline when you connect the highs of June 1, June 10, June 22, and June 23. If there are enough sellers at this price level, we could soon see BTCUSD fall to klast week’s lows around $8,939.55. If support at this level does not hold, the next floor could be at $8,695.50.

On the other hand, it is worth pointing out that BTCUSD seems to have formed what looks like a double bottom chart pattern. This is characterized by a market bouncing off a support level twice. In the case of bitcoin price, this level was $8,295.04. When you enroll in our free forex trading course, you will learn that this is widely considered as a bullish reversal indicator. As of this writing, BTCUSD is retesting its neckline support. However, a strong close above the falling trendline at $9,400.00 may mean that we could soon see bitcoin price rally to its June 23 highs around $9,703.60.

Bitcoin Price, 4-Hour Chart

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