Bitcoin (BTC) Breakout Looms as Bulls Continue the Onslaught

On June 1, Bitcoin smashed the major $10,000 resistance as price reached a high of $10,398. The following day, BTC plunged helplessly to $9,150 low. Immediately, the price corrected upward to the upside range; precisely above $9,400 support.

BTC/USD - 4 Hour Chart

BTC/USD – 4 Hour Chart

Resumption of upside range between $9,300 and $9,800

The king coin survived the shocking breakdown because the price corrected upward into the upside range. Certainly, the resumption of the upside range between $9,300 and $9,800 has begun. In May, the upside range was functional but the bulls failed to breach the overhead resistance. Perhaps, in June, we may see a different ball game. On June 1, the smashing of the resistance zone reached the overbought region at $10,398. Sellers emerge to push prices down. The retracement could have subsided at $10,000 or $9,950 support.

Rather, the bears took undue advantage as the king coin crashed. On the chart, the market was in consolidation after the breakdown. This is because buyers and sellers are undecided about the next move of Bitcoin. The crypto has returned to the upside range, therefore the next move is to retest the $10,000 overhead resistance.

As earlier indicated in the previous article, as long as the price remains above $9,300, a retest of the overhead resistance is possible. The price is indicating a bullish signal. BTC is in a bullish momentum as it is above 25 % range of the daily stochastic.

BTC/USD - Daily Chart

BTC/USD – Daily Chart

On the daily chart, before the breakout on June 1, the candlestick pattern changes to small candle bodies. A breakout occurs after the appearance of small candle bodies like Doji and Spinning tops. A strong bounce is likely to break the overhead resistance.

Perhaps the June 1 price action may repeat itself. The market is currently at level 53 of the Relative Strength index period 14. The coin is in the uptrend zone. Conversely, the upside analysis will be invalidated if the bears break below the $9,300 support.

NordFX