The mighty Bitcoin remains under selling pressure

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Updated: 22 June 2020

Hello traders! The Bitcoin still remains below the key psychological resistance level, which is located at USD 10,000. Recently BTC/USD managed to move above the 10k level, reaching 10414. Although it was a very short-lived high, and price immediately went below the 10k yet again.

Clearly Bitcoin has not enough steam to break above this massive resistance area. We can see that the 50 Exponential Moving Average was broken and the price bounced off the EMA on June 16. Along with the EMA, the price cleanly rejected a 61.8% Fibonacci retracement level and then broke below the EMA yet again.

Overall, the resistance area has been formed between 9507 and 9479. And while remains below this area, the Bitcoin must be expected to go lower. Currently, price is right in the resistance area, which might be very attractive for sellers, especially short term speculators.

For this reason, Bitcoin’s price might drop once again, to test the 9150 support area. This support is confirmed by two Fibonacci retracement levels. 38.2% and 127.2 Fibs applied to the current correctional wave up.

In regards to the upside, multiple factors are needed to confirm the uptrend. First off it is a break above the 9507 level, which is current resistance. Then the price must break above the downtrend trendline and finally above the 61.8% Fibs at 9590. If/when this scenario will become the reality, BTC/USD can be expected to initiate an uptrend. But till then, downtrend continuation will have a higher probability.

Bias: Bearish while below 9507

Potential Resistance Zone: 0.9507 – 0.9590

Potential Targets: 9150

Have a profitable trading!