In brief:
- Bitcoin’s journey above $10,000 has been hammered down three times.
- On a macro level, this forms a classic Triple top that could lead to lower levels as cautioned by Mr. John Bollinger.
- BTC losing $9,300 will probably open the doors to lower levels below $9,000.
The month of June has seen Bitcoin attempt to break and hold the psychological price level of $10,000 without success. The King of Crypto has been ranging between $9,800 and $9,300 since its massive dip from $10,400 on the 2nd of June. On the latter date, Bitcoin experienced a classic Bart Simpson pattern that dipped as far down as $8,600 on Bitmex and $9,300 on Binance.
$9,300 Needs to Hold for Bitcoin
It is with the latter price level of $9,300 that Bitcoin has its strongest support above $9,000. Losing $9,300 will most likely result in BTC testing the less strong support levels at $9,150 and $9,050. To note is that Bitcoin has attempted to break the $10,000 price level three times since the Coronavirus crash of mid-March. Such a move is often referred to as a Tripple top and foreshadows a trend reversal to the downside.
Brief Technical Analysis of BTC/USD
Further checking the daily BTC/USDT chart courtesy of Tradingview.com, the following can be observed.
- The Golden Cross between the 50-Day and 200-Day moving averages is still very much intact.
- Bitcoin’s current price around $9,450 is above the three moving averages: 50, 100, and 200 Daily MAs.
- However, trade volume has declined in the last few days.
- MACD is also showing signs of fatigue thus pleading the case of a dip to $9,300 in the coming days.
- MFI is at 66 thus providing a minor level of hope for bulls.
Conclusion
The month of June opened with much-needed bullishness as Bitcoin broke $10,000 and hit a new peak around $10,400. However, the King of Crypto has since retraced in a move the inventor of Bollinger Bands referred to as a Head Fake. Mr. Bollinger further advised that traders should proceed with caution when longing Bitcoin or opt to simply short BTC.
Further checking the charts, Bitcoin is oscillating between $9,800 and $9,300 after being rejected for a third time as it attempted to break and hold $10,000. Therefore, all analysis points to BTC retesting $9,300. This support zone is crucial for Bitcoin to maintain its bullish narrative post halving. Failure to which BTC will dip further to levels below $9,000.
As with all technical analyses of Bitcoin, traders are advised to use risk management techniques as well as stop losses to protect trading capital.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
