After a strong bullish start to June when BTCUSD closed with a profit of 8.02%, it gave up almost all of its gains in yesterday’s trading. Bitcoin price finished with a 6.64% loss at $9,525.73.
The hourly time frame suggests that the cryptocurrency may soon trade lower. This is because the cryptocurrency has began trading below the trendline support when you connect the lows of May 26, May 31, and June 1. Bitcoin price has also recently been trading in a tight consolidation which follows a sharp drop. Consequently, a bearish flag chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is a bearish continuation indicator. A strong bearish close below yesterday’s low at $9,135.68 could mean that BTCUSD may soon trade even lower to near-term support at $8,719.24 where it bottomed on May 26.
It’s also worth noting that bitcoin price did not really clear resistance at its previous highs on the daily time frame. This further supports the bearish bias that the setup on the hourly chart showcases.
However, take note that BTCUSD bounced off support at the rising trendline (from connecting the lows of March 13, April 16, April 21, and May 24). If there are enough buyers in the market, this may be a sign that we could soon see bitcoin price retest its recent highs above $10,200.00.