On June 22, the Bitcoin price created a bullish engulfing candlestick and broke out from a descending wedge that had been in place since the beginning of June.
The price reached a high of $9,780 before decreasing slightly to $9,600 where it was trading at the time of press.
Descending Wedge Bitcoin Breakout
The Bitcoin price had been trading inside a descending wedge since June 1, having made two unsuccessful breakout attempts until now. On June 22, the price finally broke out from this pattern, doing so with considerable volume.
The price found resistance between the 0.5-0.618 Fib levels at $9,645-$9,820 and is currently trading very close to the former, after retracing slightly and creating an upper-wick.
Looking at the hourly chart, we can see that the main support area is found at $9.530, which is a previous resistance area, meaning it is likely to act as support from now on. This area is also central to the 0.5 Fib level of the entire upward move.
In addition, a bullish cross has transpired between the 50 and 200-hour moving averages (MA), which are expected to provide additional support.
While volume has been decreasing since the initial breakout, there is no bearish divergence in the RSI yet, so the upward move could continue, especially after a possible short-term retracement.
The daily chart shows that even though BTC created a bullish engulfing candlestick yesterday, it did not transpire with considerable volume, especially when compared to the bullish hammer created on June 15. This puts into doubt the strength of the current movement.
Also, there is resistance at both $9,900, a previous resistance area, and $10,050, which is the range high.
If the price gets there after retracing to $9,530 as discussed in the previous section, a move to the downside would be expected.
For our previous analysis, click here.
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Source: Be In Crypto