Bitcoin Price Slides Below Trendline Support; More Downside Potential Ahead?

Bitcoin price continues to struggle in finding enough bids to rally towards the $10,000.00 psychological handle. Last week, BTCUSD closed with a 4.13% loss at $9,329.99. On the weekly chart, this translated to a bearish engulfing candlestick as bitcoin price closed well below the body of the previous week’s candle. 

When you enroll in our free forex trading course, you will learn that this is considered a bearish confirmation signal. It’s also worth pointing out that this candlestick along with the previous week’s shooting star formed at a resistance level.

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A closer look at the daily time frame also shows that BTCUSD is trading below support of a rising trendline (from connecting the lows of March 13, March 16, April 16, April 21, and May 25). If there are enough sellers in the market, we could soon see the cryptocurrency fall to the $8,000.00 psychological handle. On the daily time frame, it can be seen that this price coincides with the 100 SMA and 200 SMA. 

Alternatively, a bullish close above the highs of June 11 at $9,981.24 could mean that there are still buyers in the market. Should this happen, it would not be improbably for bitcoin price to rally towards its June 1 highs at $10,429.26.

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