Technicals Suggest That Bitcoin Price Could Soon Trade Up to $9,400.00. Here’s Why.

Bitcoin price has seen a gain of over 2% in the last four days. Today, BTCUSD is up modestly by 0.21% as it trades at $9,252.56. However, technicals suggest that the cryptocurrency may soon trade higher.

On the 4-hour time frame, it can be seen that bitcoin price has recently made higher lows after a series of lower lows. Consequently, an inverse head and shoulders chart pattern has formed. When you enroll in our free forex trading course, you will learn that this is widely considered as a bullish reversal pattern. BTCUSD is already trading above the neckline resistance which is around $9,220.00. This would suggest that buyers could be getting ready to push the cryptocurrency to near-term resistance around $9,400.00.

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This price coincides with the falling trend line when you connect the highs of June 1 and June 22. This price also seems to align with the 200 SMA. Reversal candlesticks around this price could mean that the downtrend on bitcoin price is still intact and that BTCUSD may soon fall to its June 27 lows at $8,830.63.

On the other hand, a closer look at the 1-hour chart would show that the cryptocurrency may find support at its short-term trendline. When you connect the lows of June 27, June 29, and July 1, it can be seen that BTCUSD may find support at $9,194.90 where it may also test the 200 SMA.

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