After a sharp rejection right at the significant $10,000 mark, Bitcoin (BTC) is trending in a very important area. Still drifting up placidly but starting to show fatigue, the leading crypto has a chance to break a years-held resistance trendline, and potentially rocket up to its all-time highs. What’s more, the notable Puell Multiple mining indicator continues to heap on buy signals.
Looking at a daily chart below, we can see that Bitcoin is now squeezed in tightly under the red resistance zone. This zone is EXTREMELY important, being essentially the exact same downtrending resistance that has held since December of 2017.
Therefore, it is reasonable to expect still resistance here, which we are getting. Down on the RSI, we are seeing a clear bear divergence show up, signaling what may be a coming breakdown and retreat from both the downtrend and the key $10,000 mark. Volume has also been steadily falling in the past couple of weeks (Bitstamp), not boding well for the prospects of a breakout.
However, to flip the scripts a bit, the highly regarded Puell Multiple (discussed here) is adding onto its bullish picture.
The Puell Multiple (Miner Revenue Indicator) just flashed a MASSIVE BUY SIGNAL the 4th time in #Bitcoin history!
Every time the Multiple (orange line) left the green territory we had a huge BULLRUN!
Bulls, get ready for 2020/2021! 🤩 pic.twitter.com/OZdwMdot3R
— MMCrypto (@MMcrypto) June 4, 2020
After recently bottoming out to the bottom of its historical range, this key indicator is starting to head back up; and this behavior earlier in Bitcoin’s history has signalled epic bull runs.
There is room here for both narratives: the daily outlook is a medium-term timeframe, while the Puell is definitely a long term one. We could see a temporary retreat on the daily, followed by the final break of the downtrend.
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