Bitcoin (BTC) Price Pushes Up Amid Head-And-Shoulders Concerns

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Since reaching a low on  June 10, 2019, the Bitcoin (BTC) price has been increasing. It has created several higher lows and highs.



At the time of writing, it was trading slightly above $8100.



Where will it go next? Keep scrolling below in order to find out. (Click here to read our previous analysis.)

Bitcoin Price (BTC): Trends and Highlights for June 13, 2019

  • The price of BTC/USD reached a low on June 10.
  • It is trading inside an ascending wedge.
  • The BTC price is possibly creating a head and shoulders pattern.
  • The weekly candlesticks have created an evening star reversal pattern.
  • The 10- and 20-day moving averages have made a bearish cross.
  • There is resistance near $8400.

BTC Price: Previous And Current Patterns

The price of BTC/USD on BITFINEX was analyzed at one-hour intervals from June 9 to June 13 in order to trace the current trading pattern.
Since June 4, the Bitcoin price has been following a horizontal resistance line near $8100. On June 12, the price broke out above it.

The breakout occurred with significant, but not extreme, volume. Afterward, the BTC price returned to validate the resistance line as support.

Furthermore, using the same support line and the high created after the breakout, the price is currently trading inside the ascending wedge outlined below.

At the time of writing, the Bitcoin price was trading in the middle of the wedge.

Where will it go next? A look at technical indicators is required in order to find out.

Relative Strength Index

The BTC price is analyzed alongside the 10- and 20-day moving averages below:

On June 7, the 10-day MA crossed below the 20-day one. This is known as a bearish cross and often indicates that a downtrend has begun.

Since then, the price has been trading below both MAs, facing very close resistance from the 10-day one. However, the breakout from the triangle outlined in the previous section caused the price to move above the 10-day MA. However, it is still trading below the 20-day one.

A movement above it would decrease the significance of the bearish cross.

Head And Shoulders

Furthermore, the Bitcoin price is possibly creating a head and shoulders pattern. This is a bearish reversal pattern.

On yesterday’s analysis, we stated that :

The pattern consists of the left shoulder (highs on May 15), the head (highs on May 30) and the right shoulder. For the right shoulder to be completed, the BTC price would have to break out of the triangle and reach values close to those on May 16.

While the price broke out from the triangle, the high fell slightly short of what was achieved on May 16.

A bearish outlook is also given by a weekly candlestick analysis.

We stated previously that

The price of BTC has created an evening star pattern. It is a bearish reversal pattern consisting of three candles: a large bullish candlestick, a candlestick with a small body and a bearish engulfing candle.

Last week’s candle ($7633) closed below the opening price of the candle for the two weeks prior ($8133).

Yesterday’s increases are still insignificant relative to the massive bearish candle of the week prior. A close for the week above $8800 would invalidate this pattern.

Therefore, a close above $8800 would invalidate both the evening star and the head and shoulder pattern. Until then, however, technical indicators still support the hypothesis that the price is in a downtrend.

Future Movement

One resistance area for BTC/USD is traced in the graph below. It is used to determine future areas of reversal.

The closest resistance area is found near $8400. If the BTC price continues to increase at the rate predicted by the wedge, it is likely to reach this area on June 16.

Summary

Bitcoin (BTC) is trading inside an ascending wedge. The daily moving averages have made a bearish cross and support further decreases. Furthermore, the Bitcoin price is possibly making a head-and-shoulder pattern. An analysis of technical indicators supports price increases inside the wedge until the price eventually breaks down.

Do you think the Bitcoin price will reach the resistance area outlined above? Let us know in the comments below.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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