Bitcoin Price Slides Below Trendline Support; More Downside Potential Ahead?

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Written By: Angeline Feliciano

Jun 15, 2020, 04:25 BST 04:25

BTC

Summary:

Bitcoin price continues to struggle in finding enough bids to rally towards the $10,000.00 handle. Last week, BTCUSD closed with a 4.13% loss at $9,329.99.

Bitcoin price continues to struggle in finding enough bids to rally towards the $10,000.00 psychological handle. Last week, BTCUSD closed with a 4.13% loss at $9,329.99. On the weekly chart, this translated to a bearish engulfing candlestick as bitcoin price closed well below the body of the previous week’s candle.

When you enroll in our free forex trading course, you will learn that this is considered a bearish confirmation signal. It’s also worth pointing out that this candlestick along with the previous week’s shooting star formed at a resistance level.

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A closer look at the daily time frame also shows that BTCUSD is trading below support of a rising trendline (from connecting the lows of March 13, March 16, April 16, April 21, and May 25). If there are enough sellers in the market, we could soon see the cryptocurrency fall to the $8,000.00 psychological handle. On the daily time frame, it can be seen that this price coincides with the 100 SMA and 200 SMA.

Alternatively, a bullish close above the highs of June 11 at $9,981.24 could mean that there are still buyers in the market. Should this happen, it would not be improbably for bitcoin price to rally towards its June 1 highs at $10,429.26.

Written By: Angeline Feliciano

Angeline Feliciano has been trading Forex for over ten years. She has invaluable experience working in FX education companies like BabyPips.com and Learn to Trade as a trader, currency analyst, trading coach, and presenter. Aside from these roles, she has also created intensive educational content on fundamental analysis which is heavily sought after by retail traders. She has taught hundreds of people how to trade the FX market in the Philippines and in Australia. When she is not trading, you can find her in the gym lifting weights.