On June 1, the Bitcoin (BTC) price broke out from a pattern that had been in place for nearly one month and proceeded to reach a high of $10,380. While this is a very bullish development, the price has yet to move above a crucial resistance area that will likely determine the direction of the long-term trend.
Cryptocurrency trader @CryptoCapo_ tweeted a chart saying that in order for the trend to pick a direction, the price has to move outside of the $8500-$10,500 area:
This is my plan. -3D candle close below $8.5k: bearish scenario (primary) almost confirmed. -S/R flip of the $10.5k level: bearish scenario almost invalidated, and targets should be $12k and $14k. Consolidation above $14k and it will probably go to the ath.


Short-Term Breakdown
During the time of writing, the Bitcoin price was strongly rejected by the $10,500 area, creating a massive bearish engulfing candlestick in lower time-frames. However, the price is still holding on to the $9400 minor support area, allowing for the possibility of an upwards retracement. In addition, it is worth noting that volume has been higher during yesterday’s breakout than during today’s decrease — suggesting that bulls are still in control.
- Break out above $10,500 and validate it as support, which would make the trend bullish.
- Break down below the long-term ascending support line which is currently at $8900.

Disclaimer
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