Bitcoin market overview: BTC/USD bull rally loading or bull trap?

  • Bitcoin revamped the short-term bullish picture with a formidable move past $8,100.
  • Bitcoin rally triggered following a breakout from the bullish flag pattern.

The formation of a rising wedge pattern for BTC/USD trading pair suggests the largest crypto’s rally above $8,000 might not last long. At present, BTC is 9% higher from the weekend low slightly above $7,500. The same $7,500 support anchored Bitcoin declines on June 6.

Bitcoin revamped the short-term bullish picture with a formidable move past $8,100 On June 12. The successive trading sessions have been positive as well. Unfortunately, the trading volumes have remained almost not reactant and the rally is without substance. If anything Bitcoin volume on CoinMarketCap has declined 42% from the highs seen in May at $33 billion to the current $19 billion.

The rally was triggered following a breakout from the bullish flag pattern as observed on the chart. However, the gains have been thinning within a rising wedge pattern suggesting a reversal. For now, Bitcoin is trading at $8,2888 with the initial support at $8,200, $8,100, $7,700 and $7,500.

Bitcoin needs to breach the $8,300 level and focus on correction towards $8,400 in order to be safe and avert the impending danger.

BTC/USD 1-hour chart

BEST BROKERS TO TRADE CRYPTO

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.