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When Will Bitcoin Make a Decisive Move?

2 mins
Updated by Kyle Baird
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In Brief

  • The Bitcoin price has possibly broken out from a short-term descending resistance line.
  • A golden cross has transpired on the hourly time-frame and there is minor support at $9,700.
  • The price has yet to move above the 0.5 Fibonacci level of the previous decrease.
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On June 10, the Bitcoin price moved in a range between $9,570-$9,870. Even though the price broke out from a short-term resistance line, this movement will likely have no ramifications for the longer-term trend.
Yesterday, the Bitcoin price broke out from a descending resistance line that had been in place since June 5. While the slope of the line is not entirely clear due to numerous long upper wicks, it is certain that the BTC price has broken out and validated the line as support afterward. The breakout occurred with a higher than average volume.

Bitcoin’s Confluence Of Supports

Prior to breaking out, the BTC price bounced at the minor $9,700 support area. This was preceded by a bullish cross of the 50 and 200-hour moving averages (MA), which are now offering support to the price. This is a bullish sign that suggests that the price is likely to move upwards, at least in the short-term.
Bitcoin Price Movement
Bitcoin Chart By Tradingview
However, this movement will likely have no bearing on the long-term trend, as was stated by @PostyXBT :
Your daily reminder that nothing has changed, yet.
The price would have to significantly break out from the $9,400-$10,100 range for a possible confirmation of the direction of the long-term trend.

Future Movement

A look at a slightly longer-term chart reveals that BTC is still trading below the 0.5 Fibonacci level of the June 1 increase, and this is its fourth attempt at breaking out. Additionally, this resistance area also coincides with the May 15-25 highs. While a resistance/support area becomes weaker each time it is touched, a breakout from this level would be expected to take the price somewhere between the 0.618-0.765 Fib levels at $9,950-$10,100. On the other hand, if a rejection occurs, similar to what happened in May, BTC would likely fall to the $9,450 support area once more. If that occurs, we would expect a breakdown to $9,000 or below.
Bitcoin Retracement
Bitcoin Chart By Tradingview
To conclude, while the Bitcoin price is showing short-term bullish signs, the direction of the longer-term trend is still unclear. A breakout above $10,100 would suggest bullishness, while a decrease below $9,400 would be a sign of a bearish trend. For our previous analysis, click here.
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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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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