After over a week of consolidation, bitcoin price has started to move again as we enter the weekend. Many had anticipated a selloff and larger correction, which still may come, but at the moment the bulls are back in play as BTC breaks resistance.
BTC/USD Breaks Resistance
From an intraday low of around $8,200, bitcoin price shifted gear and broke this resistance level to push to a high of $8,730 a few hours ago during early Asian trading. The 6% gain has had the usual effect of lifting most of the altcoins with it. Bitcoin volume has also increased to its highest level for over a week which is back above $20 billion.
At the time of writing, BTC [coin_price] had retraced slightly but was still trading at a two week high of $8,650.
Bitcoin Correction Fears Fading
Now that the expectations of a massive correction have started to dissipate, and the head and shoulders formation has broken down, traders and analysts are turning to the charts to map out bitcoin’s next move.
Analyst Josh Rager has shared two possible scenarios revolving around a resistance level at $8,566.
Battle at the $8566 resistance. Two possible scenarios:
1. Close above this level and continue up to $8750+
2. Close below level, retest $8k area followed by push back up to $8750+
The next couple hours will be key for 4hr and daily close.
https://twitter.com/Josh_Rager/status/1139644270909038593
It turns out that the first scenario was the correct one as the daily candle closed at $8,700. BTC is currently sitting at the next resistance level so a move above this could take it back to $9k once again. The opposite would be a pullback to the $8,400 zone in the short term.
Trader ‘CryptoFibonacci’ has been looking at the futures charts which also confirms that the head and shoulders are now null.
So, the “possible” Head and Shoulders pattern is null and void IMO. The futures closed right close to the 61.8 retrace. Another gap is possible, but the Squeeze indicator is still not giving any signal at all.
$BTC Daily CBOE Futures Chart.
So, the "possible" Head and Shoulders pattern is null and void IMO. The futures closed right close to the 61.8 retrace. Another gap is possible, but the Squeeze indicator is still not giving any signal at all. #BTC #bitcoin pic.twitter.com/DACRHN5kY6
— CryptoFibonacci (@CryptoFib) June 15, 2019
The move has taken bitcoin dominance back over 56% and lifted total crypto market capitalization by over $10 billion in the last 24 hours.
Total market cap is now around $272 billion, its highest level since June 3. The rest of the pack appears to be slowly following their leader but gains are a lot smaller as bitcoin is clearly in the driving seat this Saturday morning.
Will bitcoin hit $9k this weekend? Add your thoughts below!
Images via Shutterstock