As Bitcoin consolidates above former resistance, reversing its recent downtrend, using technical analysis, traders are noticing that another potential upward movement could be in play in the near future.
Despite a parabolic April and May, Bitcoin appears to be gearing up for another potential move upward in mid-June. While many expected another few weeks of consolidation, Bitcoins continued resilience at $7,800 will likely attract buying power, and has the potential to carry price to its next major resistance at $9,400. The short to medium term potential supports and resistances are highlighted below.
Current Price: $8,000 Supports: $7,800, $7,200, $6,800 Resistances: $8,400, $8,600, $9,400
The bullish sentiment was a recent development in the markets as of Monday, as prior consensus implied a much needed period of continued consolidation and a possible short term downtrend to the $6,000 level.
Monday’s shift in sentiment could be in part to several events, although Litecoin’s surge to over $140 certainly has bears on the retreat across all parts of the crypto-ecosystem.
Considering Litecoin has been a leading indicator for incoming market moves for the previous six months, the sentiment for Bitcoin’s incoming price movements has quickly shifted to bullish across the majority of timeframes.
Criteria for Continuation
As long as bulls maintain $7,800, the continuation of this explosive period should be expected. In the event the price drops instead, look for $7,200 and $6,800 to provide strong buying strength, as they are each proven and historic buying ranges from the 2017/2018 price moves, respectively.
Shorter-term, on the one-day frame shown, resistances lie around $8,100 and $8,600, although movement beyond these levels suggests price movement to the $9,400 resistance, which potentially will be a resting place for consolidation after the expected move up comes into reality.