- Bitcoin price is getting squeezed in the short term for a breakout to the upside.
- A retest of the double top at $36,709 is justified.
- BTC must hold above $33,000 to stay bullish.
Bitcoin price was underwater alongside most other cryptocurrencies yesterday, under pressure by profit-taking after a solid rally during the weekend. This morning BTC already pared most of the losses and are back around the profit levels from Sunday evening.
Bitcoin price's 55-day SMA could put a lid on bulls
Bitcoin price has been on a roller coaster ride for the past few days since buyers came in to push prices higher during the weekend. After a complete retrace of those gains, BTC is back up again near $34,865.
Although the correction on Monday seemed heavy, Bitcoin bounced off the ascending green trend line starting on June 22, proving its strength. The trend line remained well respected and allowed buyers to jump back in.
A push further up is now the next step as short sellers will be pushed out of their positions and will wait on the sideline for another entry point to go long. That level will be around $36,709, a double top that has not been breached since June 19.
-637611732591614071.png)
BTC/USD daily chart
Either a squeeze or even a triangle play in Bitcoin is unfolding, and both should be expected to test the green ascending trend line or test the double top at $36.709 in the coming days.
Buyers must be cautious that just above that $36.709-level sits the 55-day Simple Moving Average (SMA), which puts an additional cap on Bitcoin going higher. This is a level to mark up as short sellers will be looking for this level to go short; and short-term buyers, to take some profit.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?