Bitcoin (BTC) Pending Bull Flag With $10,000 Eyed as Support
BITCOIN PRICE CHART – TECHNICAL OUTLOOK
- Bitcoin (BTC) is roughly 25% lower from its year-to-date high of $13,880 printed back on June 26
- Bitcoin could retest technical support near the $10,000 price level where the cryptocurrency may begin to stage an attempt to turn back higher
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The price of Bitcoin (BTC) has drifted considerably lower since its impressive stretch of gains recorded during the first half of the year. While BTC currently trades around $10,300 – down about 25% from its 2019 high inked last month – the cryptocurrency threatens to rebound higher with a bounce off near-side technical support.
BITCOIN PRICE CHART: DAILY TIME FRAME (NOVEMBER 30, 2018 TO JULY 22, 2019)
The recent pullback in Bitcoin, although worrisome on the surface, could be a constructive pattern of consolidation for bullish momentum to continue. This is suggested by the bull flag forming on the daily BTC price chart which is highlighted above. Additionally, prospects for a bounce higher in bitcoin is also posed by BTC price action hovering around the critical level of technical support at $10,000.
This psychologically-significant area of confluence is highlighted by bullish trend support and the 38.2% Fibonacci retracement of the cryptocurrency’s year-to-date trading range. Although BTC dipped below this support zone last week, the move to the downside seemingly lacked conviction as the cryptocurrency quickly rebounded.
BITCOIN PRICE CHART: WEEKLY TIME FRAME (JULY 31, 2017 TO JULY 22, 2019)
The $10,000 price level is also highlighted by the 38.2% Fibonacci retracement level of Bitcoin’s trading range since its all-time high back in December 2017. Again, this consolidation zone could provide bitcoin with a bit of buoyancy and help keep BTC bid and a bullish bias intact. If bitcoin fails to hold this key technical support level, however, price action could swiftly sour and drive BTC down toward the $7,000 price area.
BITCOIN PRICE CHART: 4-HOUR TIME FRAME (JUNE 10, 2019 TO JULY 22, 2019)
Zooming back in on a closer time frame, there are two well-defined trendlines BTC price action could continue consolidating between and are worth keeping close tabs on. That said, bitcoin price action appears likely to keep coiling in the short-term as it aims for a retest of its critical support zone around $10,000 before making its next push higher. A breakout above trendline resistance connecting the July 10 and July 20 highs, if confirmed, could see bitcoin bulls target the $11,500 price level. Conversely, if technical support fails to hold, the world’s most popular cryptocurrency could sink further with bears potentially eyeing $7,000.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.