Bitcoin has been flirting with the $10k price level since about May 8th, right before the Bitcoin halving. Many traders on crypto Twitter were calling for a retracement to below $9000. I myself, who is long term mega bullish, thought the bitcoin price needed some relief before building back up to challenge $10k. However, in typical Bitcoin fashion it completely destroyed shorts in one massive candle that sent it passed $10k. The chart below illustrates the range BTC was sitting in for the month, since its previous uptrend.
As popular crypto trader Satoshi Flipper mentioned, Bitcoin was facing multi-year resistance, symmetrical triangle diagonal resistance, and $9800 resistance. All three of these factors were at the $10k level adding significant sell pressure to the Bitcoin price. As price moved towards these points, more bears would come into short the price as they think Bitcoin will eventually dump down to the lower part of the triangle.
What I'm looking at rn for $BTC
R1 – multiyear resistance (not decisively reclaimed)
R2 – symmetrical triangle diagonal resistance
R3 – 9800 resistance
Must go through all 3 in order to even test $10k
When it happens, I will celebrate too ??? pic.twitter.com/bHZPvb9JGF
— Satoshi Flipper is BULLISH ON $BTC (@SatoshiFlipper) June 1, 2020
This has been the battle between bulls and bears for the past 30 days and it has definitely been interesting to watch. Today, the bulls have won as Bitcoin broke all three resistance points.
However, we cannot get too excited just yet. Bitcoin has broken $10k many times before a strong retrace back down. Bitcoin bulls still have some fighting to do at some strong upcoming resistance levels if they want to break all-time highs. Around $10,400 is another strong resistance point that is close. In fact, the current pump hit a wall at around this level before pulling back. Another key resistance point is that $14k zone that was hit on the last major uptrend. Last, we cannot forget the $20k price which is what all Bitcoin bulls have been dreaming about since late 2017.
Regardless of what happens, it’s going to be an entertaining second half of the year. Bitcoin is a very volatile asset so please trade safe. None of this is trading advice. It is simply a brief analysis on the current state of the Bitcoin price.