A quick recap: over the past week, we mentioned the dull static price action of Bitcoin between the tight range of $9200 to $9500, forming a 30-days long symmetrical triangle.
As we anticipated a breakout of the triangle – that will be followed by a massive price move – yesterday it did happen. Bitcoin price broke the triangle’s upper boundary, along with the $9400 level (along with the MA-50 line), surpassing the next resistance at $9600 – touching $9800 along with the yellow-marked descending line on both attached charts.
At this point and as of writing these lines, Bitcoin was not able to breach the critical yellow line while confirming old resistance at $9600 as new support.
What’s Next For BTC?
As can be seen, the $9600 becomes the new baseline for Bitcoin, and it will look to maintain it as so. From above, the $9800, along with the yellow line, is the next test.
How strong is the yellow descending line? Aside from a fake-out (the pump to $10,500 on the first day of June), Bitcoin had made at least 9 attempts to break this line.
Once it finally happens, we can expect Bitcoin to face the $10,000 mark once again. Hopefully, this time the momentum will stay with the bulls to hold there.
Adding to the above, the $9800 – $10,000 is full of demand chunks. However, if the bulls plan to push Bitcoin above $10K – the $10,200 and $10,500 will come quickly.
From below, if Bitcoin fails to hold the $9600 as support, then the next support lies around the $9400 resistance turned support level, where lies the 50-days moving average line (the pink line). Further below lies $9270, $9200, and $9000.
Despite the excitement, the volume level of yesterday was significant only by means of the days before the breakout – the past week. Compared to the high levels of May, the volume is still minor.
Total Market Cap: $273 billion
Bitcoin Market Cap: $177 billion
BTC Dominance Index: 64.7%
*Data by CoinGecko
BTC/USD BitStamp 4-Hour Chart
BTC/USD BitStamp 1-Day Chart