Bitcoin (BTC) has consolidated since June 22 in an ascending triangle pattern, whose top had been about $11,200. Early in the morning today (June 25, UTC), BTC broke cautiously and methodically – no monster green candles – above this level to make an attempt for new highs.
But new gains have now stalled at about $11,400, and some bearish signs are creeping into the picture, especially on the medium timeframe charts.
Looking at the 1 hour below – the Bitstamp chart, but check out Coinalyze to easily view virtually any exchange’s price – we see Bitcoin breaking the $11,200 level with good volume. The volume, however, has quickly dropped off when approaching the dense resistance just above. Bitcoin will not be able to remain at this level for much longer, without either breaking further up or coming back to retest the breakout zone (near the 21 EMA, blue).
Moving to the 4 hour plus RSI chart, we see that rising price on the candle bodies have been unable to put in a higher RSI peak – although the downtrend line was broken on the latest push. It is definitely not too late for this RSI to come up and put in a higher peak, though – putting Bitcoin at a moment of decision at time of writing.
As covered on yesterday’s price analysis, Bitcoin is now well within an important area of resistance – and the very long term is now interacting with the very short term.
The price is now striking precisely at the peaks of prior support and resistance of the 2018 bubble-pop. Not only this, but the 0.5 Fibonacci retracement level lies precisely at $11,500 – basically sitting on top of current price.
These long term price levels make the current short term price action all the more important to watch. Each indication on the small timeframe charts are speaking to very important historical price action – and breaking the 0.5 Fibonacci range would leave essentially no resistance up to the 0.68 at $13,500.
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