Bitcoin price analysis for June 8-14: crypto is setting up for a sharp rally

Bitcoin has an increased possibility of a breakout and a new uptrend

In May, 2.5 million new jobs were added and the jobless rate in the US dropped to 13.3 per cent. This suggests that the economy is likely to bounce back as businesses resume operations. However, one must keep in mind that the economic recovery has happened due to the massive stimulus provided by the central banks. After the initial recovery, the economy is likely to take a long time to get back to the path of steady growth.

The money printing is likely to result in a hyperinflationary environment in the future. Therefore, institutional investors are hedging their portfolio with gold and Bitcoin. With increasing demand, the downside looks limited but the upside looks bright. Bloomberg expects Bitcoin to reach $20,000 this year.

The fundamentals remain strong but the sentiment in the short-term looks weak. Let’s analyze the weekly and the daily chart to do the Bitcoin price trend analysis

Bitcoin price technical analysis: weekly chart

Bitcoin surged to an intra-week high of $10,420.55 but the bulls could not sustain the higher levels. This suggests that the bears are aggressively defending the resistance at $10,500. The week closed at $9,751.25, with a gain of 3.26 per cent.

Although the bulls are struggling to sustain the price above $10,000, the important thing to note is that they have not given up much ground. This indicates that the bulls are accumulating on dips.

This also increases the possibility of a breakout of $10,500 and the resumption of the next leg of the up move. The upsloping 20-week EMA and the RSI close to 60 level suggests that the buyers are at an advantage.

This bullish view will be invalidated if the BTC to USD pair turns down and breaks below the moving averages. Such a move could signal weakness and the bears are likely to drag the price down to the support line of the large symmetrical triangle.

Bitcoin price weekly analysis suggests accumulation by the bulls at lower levels. Let’s do the BTC price analysis of the daily chart and determine the critical levels to watch out for.

Bitcoin price technical analysis: daily chart

Bitcoin broke out of the overhead resistance on June 1 but the bulls could not build upon this move. On June 2, the price again re-entered the triangle.

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However, a minor positive is that the bulls have not allowed the price to dip below the 20-day EMA. This suggests that the sentiment is to buy the dips.

Currently, the price is stuck between the 20-day EMA and the resistance line of the symmetrical triangle. If the pair breaks out of the triangle once again, the bulls will attempt to clear the $10,500 resistance.

On the other hand, if the bears sink the price below the 20-day EMA, a drop to the 50-day SMA is possible. This is a critical support because if this breaks down, a drop to $8,050.50 is likely.

How to trade Bitcoin this week

As the price has been trading near a critical resistance for the past few days, the next breakout is likely to be strong that can carry Bitcoin to above $11,000 levels. 

Therefore, traders can consider buying on a break above the triangle and with a stop-loss placed below the 50-day SMA. Long positions can be avoided if the bears sink the price below the 50-day SMA.

Bitcoin to US Dollar
Daily change
16955.4
Low: 16920.4
High: 17355.2

FURTHER READING: Bitcoin explained simply: everything you need to know

FURTHER READING: Coronavirus news: the impact of lockdown revealed

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