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.
Classic Bart Simpson Pattern
$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
BTC/USDT Daily chart courtesy of TradingView.com
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.
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.