Thanks to continued dollar weakness, bitcoin price has broken past a handful of critical levels. As of this writing, BTCUSD is trading well above the $10,000.00 psychological handle at $10,978.31. Technicals also suggest there is more upside potential ahead.
On the 1-hour time frame, it can be seen that bitcoin price has recently been making lower highs and higher lows. Because this follows after a strong rally, a bullish pennant chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is widely considered as a bullish continuation pattern. A strong close above the high of July 27 at $11,417.11 could mean that we could soon see BTCUSD rally to $12,325.00 where it peaked on August 2019.
On the other hand, a strong close below today’s low at $10,855.81 may mean that there are still sellers in the market. Bitcoin price could slide to $10,449.40 where it may test the 61.8% Fib level (when drawing the Fibonacci retracement tool from the low of July 26 to July 27). If support does not hold, the next floor could be at $9,873.22.
Bitcoin Price, 1-Hour Chart
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