Bitcoin Seems Bullish, But Could This Turn Into a False Breakout?

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Bitcoin false breakout

Coming after the colossal price rally, Bitcoin proceeded in its explosion above the 5-digits mark. After a day of consolidation at the important $10,500– $10,600 resistance level (in addition to the daily MA-50), the coin broke above impressively into the next resistance zone of $10,800– $11,000.

Having said that, after registering a new 14-days high at $10,919 (Bitstamp rate), Bitcoin came across the long-term ascending trend-line. That line was helping Bitcoin since the onset of May, and only just recently Bitcoin broke down from it. Yesterday was the very first endeavor to get back on top of the line, testing it as resistance.

A confirmation of the strength of the descending line is the fact that Bitcoin touched the line, got turned down, and rapidly lost around $350 of its value, back to test the $10,500– $10,600 area as support.

The RSI momentum indicator (noted on the following 1-day chart) finally broke up the 50 level, back to the bullish territory and turned around bearish effectively at the time of getting to our marked resistance at the 56 RSI level.

A word about the altcoins– well, when you don’t suppose it can get more ugly, fresh floors are being discovered. It will be hard for the altcoins to get any momentum with these types of conditions of high Bitcoin volatility. As we pointed out before on our altcoins trading tip guide, the large majority of those coins will just bleed their way to death in the long run. And It doesn’t matter whether Bitcoin goes up or down.

Total Market Cap: $287 billion

Bitcoin Market Cap: $191 billion

BTC Dominance Index: 66.6%.

* Data provided by CoinGecko.

Key Levels to Watch

– Support/Resistance:
After getting pretty much shot down from the daily long-term ascending trend-line (this time as resistance, the line is drawn in bold orange), Bitcoin recorded the last as the next significant resistance level, along with the $11,000 – $11,200 mark. In the case of a break-up, the following probable resistance levels are $11,500 (along with the 2019-high descending trend-line marked in yellow on the daily chart), $11,800, $12,000, $12,200 and $12,500.

From below, the closest support area lies at $10,500 – $10,600 (resistance turned support) which also includes the important 50-days moving average line (marked in purple on the daily chart). Further below lies the support zone at $10,000 – $10,200, which contains the 4-hour’s chart MA-50 (purple line) and MA-100 (white line). The next levels of support below $10K are $9800 and $9550.

– Daily chart’s RSI: mentioned above. Stochastic RSI oscillator is about to cross-over to the downside as once again getting in to the oversold territory. If this likelihood is confirmed, Bitcoin will surely go through a deeper correction before trying once again for the higher levels (as we are seemingly dealing with bullish conditions, certainly till proved otherwise).

– Trading Volume: As stated in our previous price analysis, the last spike did not carry high trading volume levels. This is observed in the most recent rejection upon reaching the ascending trend-line (as resistance). If Bitcoin has any intention to conquer higher levels firmly, it needs to be backed by more substantial numbers of buyers.

BTC/USD BitStamp 4-Hour Chart

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BTC/USD BitStamp 1-Day Chart

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The post Bitcoin Looks Bullish, But Could This Action Turn Into a False Breakout? BTC Price Analysis appeared first on CryptoPotato.

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