Bitcoin price has yet to gain the momentum that it needs to trade past resistance at $11,200.00. As I reported yesterday, the cryptocurrency has been trading sideways for the last few days. Today, BTCUSD is hovering around the $11,000.00 psychological handle. Where could it go next?
On the 4-hour time frame, it can be argued that bitcoin price may soon break out higher. This is because its recent consolidation follows a strong rally.Consequently, a bullish flag 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 there may be enough buyers in the market to push BTCUSD to its August 2019 highs at $12,325.00.
On the other hand, a close below yesterday’s low at $10,832.00 could invalidate the bullish indicator. It could mean that there are still sellers left in the market to push BTCUSD lower. Near-term support for the cryptocurrency could be at $9,800.00 where it may test the 100 SMA for support.