Bitcoin price analysis for June 22-28: a rally to $10,000 is possible this week
After spending the past few days in consolidation, Bitcoin is getting ready to make another assault at $10,000 levels
Although Bitcoin has largely been range-bound since halving of miner rewards, large investors have been accumulating during the period. On May 1, 1,811 entities held over 1,000 Bitcoins and that number rose to 1,840 by June 16, according to data from Glassnode.
Kraken crypto exchange CEO Jesse Powell has said that there is a “massive influx” of all types of investors who have opened new accounts with the firm. Similarly, Bitcoin financial services firm River Financial Inc., said that it has seen its client base double every month in 2020 largely due to an influx of new crypto investors over the age of 55.
This is likely to be a huge positive for the next bull phase. Let’s do the Bitcoin price trend analysis to identify the path of least resistance in the short-term.
Bitcoin price technical analysis: weekly chart
Bitcoin was largely flat last week, recording a marginal drop of 0.48 per cent. This suggests that both the bulls and the bears are waiting for the market to start a trending move before jumping in.
A consolidation near stiff resistance levels is a positive sign as it shows that bulls are in no hurry to close their positions. After absorbing all the selling pressure, usually, the breakout tends to happen to the upside.
Currently, the moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, which suggests that the bulls have the upper hand.
If the bulls can scale the price above the overhead resistance zone, a new sustained uptrend could start as the investors who have been sitting on the sidelines will be forced to jump in.
However, the bears are unlikely to give up without a tough fight. They will offer a stiff resistance in the $10,000–$10,500 zone and if the price turns down from this zone once again, it will hurt sentiment and can result in liquidation of long positions by investors.
The Bitcoin price weekly analysis is showing a marginal advantage to the bulls. Let’s do the BTC price analysis of the daily chart to spot the critical levels to watch out for.
Bitcoin price technical analysis: daily chart
The bulls purchased the dip below the 50-day SMA on June 15 aggressively, which suggests strong demand at lower levels. However, the rebound has not been able to sustain above the 20-day EMA, indicating selling by the bears at higher levels.
What is your sentiment on BTC/USD?
Bitcoin has been trading close to the moving averages for the past few days. Both moving averages have flattened out and the RSI is close to the midpoint, which suggests a balance between supply and demand.
A breakout of the 20-day EMA will be the first sign that bulls are back in action. The buying pressure is likely to increase after the BTC to USD pair rises above $9,600. Above this level, a rally to $10,000 and then to $10,500 is possible.
This bullish view will be invalidated if the pair turns down from the 20-day EMA or from one of the overhead resistance levels and breaks below the $9,050.90–$8,892.50 support zone.
How to trade Bitcoin this week
Aggressive traders can stay long if the price breaks out of $9,600. Partial profits can be booked or stops can be tightened if the bulls struggle to push the price above $10,000.
Conversely, if the bulls can propel the price above $10,000, traders can aim to cash out part of their positions at $10,500. This level is likely to act as a stiff resistance. Nonetheless, instead of booking complete profits, traders can keep a part of the position open because the momentum is likely to pick up above $10,500.
On the other hand, if the price slips below $9,050, long positions can be avoided as it could lead to lower levels.
| || |
FURTHER READING: The best cryptocurrencies to invest in summer 2020
FURTHER READING: Why the cheapest cryptocurrency doesn’t always make the best investment