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.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
