Bitcoin Price Update: Bulls Gaining Momentum?
So, after the sudden ascension to the $6.8k resistance, there are probably a slew of traders that are wondering to themselves, ‘what the hell is going on?’
The purpose of this price analysis will be to help them sort out that very question.
Bitcoin Price Analysis
Let’s start from the top with a chart overviewing the situation that we’re currently in:
There are a few things of note in the picture above:
- The price has clearly jumped over the $6.5k resistance, definitively. Before it was breaking above it slightly and testing $6.6k, but we couldn’t qualify that as a breakout necessarily. This, however, would be considered a definitive breakout.
- The price appears to have delicately touched the EMA-200 (purple line) on my chart before consolidating a bit to create that nice long wick that you see above. Reminder, this is the EMA-200 on the 6H (random chart setting, but I saw it before I got a chance to change it to the daily).
Now, let’s take a look at Bitcoin on the hourly and below to see how the price has evolved to get where it is now:
This is the 15-minute chart for Bitcoin here
As you can see in the chart above, there were about 4 consecutive long candles that appeared (on the 15M TF) that represented massive surges in price.
Obviously the first major green candle was the catalyst for the breakout.
Potential Reverse Head and Shoulders on the 2H
If you check out the chart above (with the Zig Zag indicator), it appears to be showing a clear reverse head and shoulders pattern.
I outline the portion that I’m talking about specifically to assist those that are having trouble seeing what I’m talking about in the chart above.
A bit lopsided, and this is only the 2H TF, so I wouldn’t bet the house on this pattern, but it’s definitely something that’s worth acknowledging.
Resistance Level at $6.8k Ain’t A Slouch
I know we haven’t talked about $6.8k too much, but he ain’t a slouch. And as you can see on the chart above, it appears that the price is having a hard time breaking above it, even as this run continues.
If the price does consolidate, then it busting back down to $6.5k to test it as a support point, would be the most likely scenario, which is ironic, because trader logic would suggest that this is the smartest point for someone to short at; unless you think that Bitcoin has enough burgeoning momentum to make it all the way up to that $7.2k mark.
It’s worth noting that the shorts have barely been moved off of this move.
Check them out below:
While there is a red candle at the very end that you can see there, the shorts aren’t necessarily getting liquidated en masse like what we saw in April.
In fact, they’re holding on pretty strong.
Now, as I write this, the price of Bitcoin is continuing to climb, and if you had a short position in at $6.5k or lower (which was probably a lot of people/a good amount of the shorts placed on $BTC — then you’re starting to feel the heat a little bit as this price heads up toward $6.9k.)
Time will tell what happens from here, but the price of Bitcoin should be monitored.
If it breaks $7k, then $7.2k would be the next mark and that’s something that could potentially spark a LOT of liquidations.
I’m personally assuming that there will be a consolidation at some point and that the bulls will struggle to push it past $6.8k without the aid of some liquidated shorts on their side to help them out.
However, as I’m writing this part, the price has breached across $6.9k before moving back down to $6.8k.
So, keep a watch on your charts and make sure to check out the war between the bulls and the bears around this $6.8k mark!