On June 21, the Bitcoin (BTC) price broke out from a descending resistance line that had been in place since July 16. This opens the way for an increase that could carry the price upwards of $9,600. The Bitcoin price had been following a descending resistance line since June 16. The price decreased at the rate predicted by the line, which was also strengthened by the presence of the 200-hour moving average (MA), making numerous unsuccessful attempts at breaking out.
Short-Term Bitcoin BreakoutOn June 20, the price bounced at the 0.5 Fib level of the entire previous upward move, creating a long lower-wick that reached the 0.618 Fib level before breaking out. At the time of press, BTC was in the process of flipping the 200-hour MA as support and continuing its upward movement. Besides a minor resistance level at $9,450, the road to $9,600 and the top of the descending resistance line seems clear.
Long-Term MovementIn the longer-term, BTC has been trading inside a descending wedge since June 1, currently being directly under the resistance line. In addition, it seems that the price has completed what resembles an inverse head-and-shoulders pattern, which is considered bullish. Therefore, there is a bullish reversal pattern inside a bullish reversal pattern. If the price breaks out, the two closest resistance levels would be found at $9,650 and $9,820. However, the weekly chart does not paint a bullish picture. The price has been decreasing since it was rejected by the long-term descending resistance line and the $10,400 resistance area on June 1. Last week, BTC created a Doji candle, which when coming after a decrease usually indicates that the trend is becoming neutral. The price movement cannot be considered bullish until BTC breaks out from both the long-term resistance line and $10,400 resistance area, and validates them as support. To conclude, the Bitcoin price has broken out from a short-term resistance line and is in the process of breaking out from a bullish pattern. However, the long-term trend cannot be considered bullish until BTC breaks out from the long-term descending resistance line and $10,400 resistance area. For our previous analysis, click here.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.