On July 8, the Bitcoin (BTC) price broke out from a descending channel that had been in place since June 1.
However, the price has stalled around the breakout level, raising concerns for the possibility that the breakout was not legitimate and the price will soon reverse its trend.
Bitcoin Channel Breakout
The Bitcoin price had been trading inside a descending channel since it reached a high on June 1. Yesterday, the price broke out from the resistance line of this channel after two previous unsuccessful attempts. The price created a bullish engulfing candlestick and reached a daily close above the resistance line of this channel with above-average volume. Currently, the $9,300 area is offering strong support. It is both a previous support area, that briefly turned to resistance before the price reclaimed it on July 6 along with the 50-day MA, which has been offering support throughout this entire move.

Short-Term Movement
In the short-term, we can see that the price has been following an ascending support line since July 6, which is supported by the 50-hour moving average (MA). The increased volume during this move is more clearly visible using the hourly time-frame. However, the RSI has generated considerable bearish divergence, a sign of weakness. Furthermore, the price has lost the support of the minor $9,420 support area, which is now acting as resistance. The current support line can be helpful in determining whether the current trend is bullish or bearish. A breakdown below this support line could indicate that the long-term breakout could not be sustained, a possibility that would be further strengthened by a loss of the $9,300 area. If the ascending support line holds, BTC could continue increasing towards the range high.
Disclaimer
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.