- Summary:
- Bitcoin price is testing critical support after it failed to trade past $10,000.00 last week. With a double top chart pattern forming, can BTCUSD hold on?
As it turned out, the $10,000.00 was just too loft a goal for BTCUSD. Bitcoin price got rejected around $9,970.00 in last week’s trading. Because it is around the same level where BTCUSD topped on May 8, a double top chart pattern has formed.
When you enroll in our free forex trading course, you will learn that this is widely considered as a bearish reversal signal. If you are keen on shorting the cryptocurrency, you will need to keep tabs around $8,591.70. This price offers a confluence of support. For one, it corresponds to the neckline support of the double top. Second, it aligns with the falling trendline when you connect the highs of June 27, 2019 and February 11, 2020. A strong bearish close below this price could mean that there are not enough buyers around this level. And so, it could imply that there is enough bearish momentum in the market to push BTCUSD around its March 16 lows at $4,910.00.
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It’s also worth reiterating that it is not unusual for markets to retest a previous trendline for support. Reversal candlesticks around $8,745.00 could mean that buyers are bracing to push BTCUSD to its recent highs around $9,970.00. If there are enough buyers in the market, bitcoin price may even trade higher to its February 11 highs around $10,483.00.